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1. Which annual-paying bond has the better value right now if both mature in 5 years at a discount rate of 7%? Bond Q: 8.5%

1. Which annual-paying bond has the better value right now if both mature in 5 years at a discount rate of 7%? Bond Q: 8.5% coupon priced at $105.75 Bond R: 6.7% coupon priced at $ 97.47

A. Bond Q B. Bond R C. Bond Q and R have the same return potential D. Not enough information is available

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