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A bond has a coupon rate of 7.2%, another a coupon rate of 9.1%. Both bonds pay interest annually, have 8 year maturities, and sell
A bond has a coupon rate of 7.2%, another a coupon rate of 9.1%. Both bonds pay interest annually, have 8 year maturities, and sell at a yield to maturity of 8.0%.
A. If their yields to maturity next year are still 8.0%, what is the rate of return on each bond?
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