Question
For each of the following 3 bonds: yield rate is the same, face value is $1000, each bond is redeemable at par and each bond
For each of the following 3 bonds: yield rate is the same, face value is $1000, each bond is redeemable at par and each bond is sold at a premium (P > C). I. A 10 year bond with annual coupons at 8%, sells for PI II. A 10 year bond with annual coupons at 6%, sells for PII III. A 20 year bond with annual coupons at 6%, sells for PIII Which of the following statements regarding the prices of these bonds is true?
PII > PI, PIII > PI
PII > PI, PII > PIII
PI > PII, PII > PIII
PI > PII, PIII > PII
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
11th Edition
1032241829, 978-1032241821
