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Bond A has a face value of $10,000, makes semiannual coupon payments of $450 and will mature in 13 years. It currently sells for $9,459.88.
Bond A has a face value of $10,000, makes semiannual coupon payments of $450 and will mature in 13 years. It currently sells for $9,459.88. Bond B is a corporate bond whose price is quoted at 96.69 this afternoon. It will mature in exactly 6 years. Bonds A and B are priced so that they each have the same yield. What is the YTM for these two bonds, and what is the coupon rate for Bond B
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Handbook Of The Equity Risk Premium
Authors: Rajnish Mehra
1st Edition
0444508996, 978-0444508997
