Mark Goldsmith’s brooker has shown him two bonds. Each has a maturityof 5 years,
Mark Goldsmith’s brooker has shown him two bonds. Each has a maturityof 5 years, a par value of $1,000, and a yeild to maturity of 12%.Bond A has a cupon intrerest rate of 6% paid annually. Bond B has a coupon interest rate of 14% paid annually.Why are the two values calucualted in part d different