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Consider the following four corporate bonds that have semiannual compounding: Bond #1 #2 #3 #4 Price $1,000.00 $932.05 $955.03 $1,098.96 Coupon Rate 8% 7% 9%
Consider the following four corporate bonds that have semiannual compounding: | ||||
Bond | #1 | #2 | #3 | #4 |
Price | $1,000.00 | $932.05 | $955.03 | $1,098.96 |
Coupon Rate | 8% | 7% | 9% | 9% |
Years to Maturity | 5 | 10 | 10 | 20 |
Which of these bonds sells at a premium? | ||||
A) #1 | ||||
B) #2 | ||||
C) #3 | ||||
D) #4 | ||||
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