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Bond A and Bond B are both issued by the same company. Each of the bonds has a maturity value of $100,000 and each pays
Bond A and Bond B are both issued by the same company. Each of the bonds has a maturity value of $100,000 and each pays a stated rate of interest of 8%. The current market rate of interest is 8% for each. Bond A matures in 7 years while Bond B matures in 10 years. Which of the following is correct? A) Both bonds will sell for the same amount. B) Both bonds will sell for more than $100,000. C) Bond X will sell for more than Bond B D) Bond Y will sell for more than Bond A
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