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4. Company ABC has a 10-year bond with a 5% coupon. The yield-to-maturity is 6%. Investors require a 6.5% yield-to-maturity for bonds issued by company
4. Company ABC has a 10-year bond with a 5% coupon. The yield-to-maturity is 6%. Investors require a 6.5% yield-to-maturity for bonds issued by company XYZ. In order for a 10-year bond from XYZ to have the same price as that from ABC its coupon rate must be: a) lower b) the same c) higher
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