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Assume each of the following bonds has 10-year maturities, and the coupons are paid annually. Which of the following bonds offers the highest yield to
Assume each of the following bonds has 10-year maturities, and the coupons are paid annually. Which of the following bonds offers the highest yield to maturity? Which offers the lowest? Which offers the highest and lowest duration?
(a) Bond A with a coupon of 2% selling for a discount of 81.62%
(b) Bond B with a coupon of 4% selling for a discount of 98.39%
(c) Bond C with a coupon of 8% selling for a premium of 133.42%
Use formula, DON'T use Excel or calculator plz.
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