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There are two bonds with the same time to maturity, but different prices and interest rates. Someone says, It is better to purchase the bond
There are two bonds with the same time to maturity, but different prices and interest rates. Someone says, "It is better to purchase the bond with the lower price and higher interest rate than the bond with the higher price and the lower interest rate." If the bond markets are in equilibrium, do you agree or disagree with this statement? Explain and graphically represent your answer.
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