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3. Two bonds are both rated AA, are $1000 par value, pay coupons annually, and mature in four years. Bond A pays a coupon of
3. Two bonds are both rated AA, are $1000 par value, pay coupons annually, and mature in four years. Bond A pays a coupon of 12%, while Bond B pays a coupon of 4%. The discount rate for debt of this nature is 10%. Foreach bond, determine the:
- Current price
- Yield to maturity
- Current yield
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