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Bonds A and B each have a face value of $1,000. Bond A pays a 13% annual coupon, Bond B pays a 14% annual coupon.

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Bonds A and B each have a face value of $1,000. Bond A pays a 13% annual coupon, Bond B pays a 14% annual coupon. Bond A matures in 14 years. Bond B matures in 16 years. If the yield to maturity on Bond A is 18% and the yield to maturity on Bond B is 12% which statement is true? A. Bond A trades at a premium of $40 to a face value of $1,000. B. Bond B trades at a premium of $186 to a face value of $1,000. C. Bond A trades at a discount of $250 to a face value of $1,000. D. Bond B trades at a discount of $139 to a face value of $1,000. E. Bond A trades at premium of $311 to a face value of $1,000

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