Q&A Hero

Question

You are considering two bonds. Both have semi-annual, 8 percent coupons, $1,000 face values, and yields to maturity of 7.5 percent. Bond S matures in 4 years and Bond L matures in 8 years. What is the difference in the current prices of these bonds?
A. $10.51
B. $11.33
C. $11.52
D. $12.67
E. $12.88