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QUESTION 6 Suppose the yield-to-maturity on all 5-year bonds is 4.00%. Now consider two bonds that each have a par value of $1,000, pay coupons

QUESTION 6 Suppose the yield-to-maturity on all 5-year bonds is 4.00%. Now consider two bonds that each have a par value of $1,000, pay coupons semi-annually, and have a maturity of 5 years. Agree or disagree: if bond A pays a coupon of 3.75%/year , and bond B pays a coupon of 4.25%/year then bond B offers a better expected retum. Agree Disagree

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