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The term structure (the yield curve) is flat. Currently the yield to maturity on Government of Canada bonds is 6.5%. You expect the yield to
The term structure (the yield curve) is flat. Currently the yield to maturity on Government of Canada bonds is 6.5%. You expect the yield to maturity to decrease to 6% tomorrow. Which one of the following regular bonds would you buy? You must purchase one bond. Each bond has 10 years to maturity and a face value of $1,000. Coupons are paid annually. bond W, has a coupon rate of 6% bond X, has a coupon rate of 7% bond Y, has a coupon rate of 9% bond Z, has a coupon rate of 8%
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