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An analyst is trying to estimate the value of an illiquid bond: a 4-year, 3% annual coupon pay bond. She identifies two corporate bonds with
An analyst is trying to estimate the value of an illiquid bond: a 4-year, 3% annual coupon pay bond. She identifies two corporate bonds with similar credit quality: Bond A is a 3-year, 4% annual-pay bond priced at 101.30 per 100 of par value. Bond B is a 6-year, 4.5% annual-pay bond priced at 102.25 per 100 of par value. What price is the illiquid bond per 100 of par value closest to? O a. 97.39 O b. 100.53 O c. 101.60
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