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Consider the following two bonds that pay interest annually. Suppose that you do not know the exact discount rate, but you know that the discount

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Consider the following two bonds that pay interest annually. Suppose that you do not know the exact discount rate, but you know that the discount rate is larger than 4 percent. Hint: Write down the cash flows of the two bonds and look at the difference. - The price difference between Bond A and Bond B per 100 of par value is closest to: a. 2.00 b. 3.77 c. 4.00

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