Consider the following two bonds that pay interest annually: At a market discount rate of 4%, the

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Consider the following two bonds that pay interest annually:Bond A B Coupon Rate 5% 3% Time-to-Maturity 2 years 2 years

At a market discount rate of 4%, the price difference between Bond A and Bond B per 100 of par value is closest to:

A. 3.70.

B. 3.77.

C. 4.00.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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