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Suppose you purchase $1000 face-value of each of the following two bonds. Bond A: 3% Coupon rate, Treasury Bond, with semi-annual coupon payments, 30-year maturity
Suppose you purchase $1000 face-value of each of the following two bonds. Bond A: 3% Coupon rate, Treasury Bond, with semi-annual coupon payments, 30-year maturity and yield to maturity 4% quoted as an APR with semi-annual compounding. Bond B: Ford Motor 6% Coupon, with semi-annual coupon payments, 10-year maturity and a spread of 2% over the 30-year Treasury Bond yield, quoted as an APR with semi-annual compounding
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