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Bond X and bond Y are issued by the same company on the same day. Each bond has a maturity value of $100,000 and each
Bond X and bond Y are issued by the same company on the same day. Each bond has a maturity value of $100,000 and each pays interest at 10%. The current market rate of interest is 10%. Bond X matures in 5 years while bond Y 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 Y.
D) Bond Y will sell for more than bond X.
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