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Consider 3 bonds with the same face value ( $ 2 , 0 0 0 ) and maturity ( 3 years ) . All three

Consider 3 bonds with the same face value ($2,000) and maturity (3 years). All three bonds offer an annual coupon, but they have different coupon rates; cra=6%, crb=8% and crc=12%. Interest rates are 8% for every maturity

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