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Question 4 : What is the value today of the following two bonds? Which of the two bonds has a greater value today bond A
Question 4: What is the value today of the following two bonds? Which of the two bonds has a greater value today bond A or B? Show your calculations.
Bond A:
Par Value: $1,400
Coupon Rate = 10% paid annually
Yield to Maturity = 5.5%
Maturity = 4 Years
Bond B:
Par Value: $1,600
Coupon Rate = $140 paid annually
Yield to Maturity = 4%
Maturity = 5 Years
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