according to the figure below, as a bond approaches maturity the premium (or discount) reduces to zero. Prove this by calculating the sales price with 7,5, and 2 years remaining to maturity for the following two bonds. Assume a constant yield to maturity of 8 percent.

A) A 10-Year, 12 percent annual coupon bond.

B) A 10-year, 6 percent annual coupon bond.

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