Question
Bond A is a 5% coupon bond with a yield of 8% p.a. Bond B is a 7.5% coupon bond with a yield of 6%
Bond A is a 5% coupon bond with a yield of 8% p.a. Bond B is a 7.5% coupon bond with a yield of 6% p.a. Both bonds have a face value of $100. The values of both bonds are likely to be:
| A. | $85 for A and $100 for B | |
| B. | $85 for A and $121 for B | |
| C. | $100 for A and $100 for B | |
| D. | $121 for A and $85 for B |
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
