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QUESTIONS Bond A is a 5% bond maturing in 12 years. Bond B is an equivalent bond with warrants. Both bonds are issued at $1,025
QUESTIONS Bond A is a 5% bond maturing in 12 years. Bond B is an equivalent bond with warrants. Both bonds are issued at $1,025 price. At that time, what could be concluded? bond A will rise in value while bond B will fall in value bond A's price will remain below par value until the maturity, when the value will be $1,000, while Bonds will remain above par value until maturity, when its value will be $1,000 bond A's yield will be higher than bond B's yield bond A's price will remain constant while bond B's price will rise over time
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