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c. the implied trade-off is that Bond B offers less interest, but if interest rates were to rise, its prices declines less. Bond B is safer.
d. The present value of the $4 foregone annually for ten...

two bonds have the following terms: bond b has an additional features. It may be redeemed at par after five years (i.e. it has a put feature). Both bonds were initially sold for their face amounts...

Two bonds have the following terms: bond b has an additional features. It may be redeemed at par after five years (i.e. it has a put feature). Both bonds were initially sold for their face amounts...