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Assume that you want to choose one out of the three bonds. All are rated BBB by S&P, with $1,000 par value and 15 years
Assume that you want to choose one out of the three bonds. All are rated BBB by S&P, with $1,000 par value and 15 years of maturity. The first has a 6% coupon rate and pays $30 every six months. The second has an 8% coupon rate and pays $40 coupon twice a year. The third has a 10% coupon and pays $100 coupon once per year. The YTM for the three bonds is 10%. Which bond(s) is(are) sold at discount? Select one: a. Bond B and C b. Bond A c. Bond B d. Bond A and B e. Bond C
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