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A company issues two types of bonds. The first is a ten year bond having a coupon rate of interest of 10%. The second is

A company issues two types of bonds. The first is a ten year bond having a coupon rate of interest of 10%. The second is a one-year bond having a coupon rate of interest of 11%. Which of the following statements are true?

A. The one year bond will sell at a higher yield than the ten year bond.
B. The ten year bond will sell at a higher price relative to its face value than the one year bond.
C. Both bonds will sell at the same price relative to their face values.
D. None of the above are true.

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