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Bond A and bond B both pay annual coupons, mature in 9 years, have a face...

Bond A and bond B both pay annual coupons, mature in 9 years, have a face value of $1000, pay their next coupon in 12 months, and have the same yield-to-maturity. Bond A has a coupon rate of 6.5 percent and is priced at $1,055.13. Bond B has a coupon rate of 7.4 percent. What is the price of bond B?

a.

$1,117.15 (plus or minus $4)
b.

$995.40 (plus or minus $4)
c.

$1,055.13 (plus or minus $4)
d.

$1,000.00 (plus or minus $4)
e.

None of the above is within $4 of the correct answer      
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