Which bond will have a higher value


Response to the following problem:

Consider two bonds, Bond X and Bond Y, each with a maturity value of $1,000 and maturing in five years. Bond X has a coupon rate of 5% and Bond Y has a no coupon. If Bond X and Bond Y are considered to be of equal risk, which bond will have a higher value today?

Show all work and calculations.

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Financial Accounting: Which bond will have a higher value
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