Question

Bond A has a face value of $1,000, makes semiannual coupon payments of $30 and will...

Bond A has a face value of $1,000, makes semiannual coupon payments of $30 and will mature in 7 years. It currently sells for $949.63. Bond B is a corporate bond whose price is quoted at 109.98 this afternoon. It will mature in exactly 15 years. Bonds A and B are priced so that they each have the same yield. What is the YTM for these two bonds, and what is the coupon rate for Bond B?

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