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Bond A is a 6% 10 year bond with yield to maturity of 5% and par value $100. Bond B is a a callable bond
Bond A is a 6% 10 year bond with yield to maturity of 5% and par value $100. Bond B is a a callable bond and Bond C is a puttable bond, both with 10 years to maturity and par value of $100. All bonds pay coupons annually. a) Among the 3 bons, which bond should have highest yield to maturity? Why? b) Which bond should have lowest yield & why?
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