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Suppose that the yield to maturity on Bond A is 10.63% on a semi-annual bond basis and the yield to maturity on Bond B is
Suppose that the yield to maturity on Bond A is 10.63% on a semi-annual bond basis and the yield to maturity on Bond B is 10.73% with quarterly compounding. Both bonds have five years to maturity. Which of the following statements is correct assuming a semi-annual bond basis
Question 6 options:
The difference in yields between the two bonds is 0.0024
The difference in yields between the two bonds is 0.0010
The two bonds have equal risks
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