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One bond has a coupon rate of 6.6%, another a coupon rate of 8.3%. Both bonds pay interest annually, have 15 year maturities and sell
One bond has a coupon rate of 6.6%, another a coupon rate of 8.3%. Both bonds pay interest annually, have 15 year maturities and sell at a yield to maturity of 8%. A if they're yield to maturity next year is 8%. What is the rate of return on each van? Be does the higher coupon bond give a higher rate of return over this period?
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