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4 . You are looking at two bonds identical in every way except for their coupons and, of course, their prices. Both have 1 2
You are looking at two bonds identical in every way except for their coupons and, of course, their prices. Both have years to maturity. The first bond has a coupon rate and sells for $ The second has a coupon rate. Gives interest rate is What do you think it would sell for?
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