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The following table The following table summarizes current prices of various zero-coupon bonds (expressed as a percentage of face value): Bond A B C D

image text in transcribedThe following table

The following table summarizes current prices of various zero-coupon bonds (expressed as a percentage of face value): Bond A B C D Maturity (years) 1 2 3 4 Price (per $100 face value) 96.62 95.18 88.90 88.85 E.g., for bond A, it will mature in 1 year and has a current bond price of $96.62. For bond B, it will mature in 2 years and has a current bond price of $95. 18. Which one of the above four bonds has the highest yield to maturity? O bond A O bond B O bond C O bond D

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