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Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.
Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.
| Bond X | Bond Y | |
| Face value | $1,000 | $1,000 |
| Annual Coupon Payment | $120 | $130 |
| Payment Frequency | Semiannual | Annual |
| Years to maturity | 15 | 15 |
| Price | $934.71 | ? |
What is the price of bond Y?
| A. | $973.44 | |
| B. | $989.75 | |
| C. | $940.92 | |
| D. | $1,007.15 | |
| E. | $925.88 | |
| F. | $956.95 |
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Property Finance
Authors: David Isaac
2nd Edition
0333987144, 978-0333987148
