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Bond A is a premium coupon bond with 20 years to maturity. Bond B is a discount coupon bond with 20 years to maturity. If
Bond A is a premium coupon bond with 20 years to maturity. Bond B is a discount coupon bond with 20 years to maturity. If interest rates remain unchanged, what direction do you expect the price of these bonds to take in 5 years? What do you expect the price of these bonds to be in 20 years (right after the last coupon is paid)?
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