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3. Consider two equally risky bonds, both of which have a face value of $100 and a coupon rate of 8%. Interest rates are expected

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3. Consider two equally risky bonds, both of which have a face value of $100 and a coupon rate of 8%. Interest rates are expected to remain at 10% for at least the next two years. One bond matures in one year and the other bond matures in two years. Which of the following is true? a. The price of both bonds must be equal. b The price of the one-year hand must be greater than the price of the two-year band. C. The price of the two-year bond must be greater than the price of the one-year bond. cl The one-year bond will sell for more than its face value

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