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Assume that ABC Ltd. and XYZ Ltd. have similar Rs. 100 par value bond issues outstanding. The bonds are equally risky. The XYZ bond has

Assume that ABC Ltd. and XYZ Ltd. have similar Rs. 100 par value bond issues outstanding. The bonds are equally risky. The XYZ bond has an annual coupon rate of 7 percent and matures 5 years from today. The ABC bond has a coupon rate of 7 percent, with interest paid semiannually, and it also matures in 5 years. If the nominal required rate of return, rd, is 10 percent, semiannual basis, for both bonds, what is the difference in current market prices of the two bonds

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