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Q10. Consider a pair of $1,000 bonds issued by the same company, at the same date: the first type of bond is a three-year zero-coupon

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Q10. Consider a pair of $1,000 bonds issued by the same company, at the same date: the first type of bond is a three-year zero-coupon bond, and the second one is a three-year 4% coupon bond. Which of these bonds will have a lower price? The three-year zero-coupon bond. (b) The three-year 4% coupon bond. Since they are issued by the same company the bonds will have the same price. (d) It depends on the riskiness of the company

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