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Jeffry is a fixed income analyst. He analyzes three bonds (Bond A, Bond B, and Bond C). He believes that the appropriate market bond yield

Jeffry is a fixed income analyst. He analyzes three bonds (Bond A, Bond B, and Bond C). He believes that the appropriate market bond yield is 8 percent per annum. He documents the following information:

A B C
Face Value ($) 1000 2000 3000
Issued 01 January 2020 01 January 2020 01 January 2020
Maturity 01 January 2030 01 January 2040 01 January 2040
Coupon Rate 6% 8% 10%
Coupon payment quarterly semi-annual annual
Price ($) 840 1970 3750

a) Evaluate the potential mispricing of those three bonds

b) Explain further consideration when Jeffry attempts to value those bonds

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