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Two annual coupons bonds both mature in 4 years. Bond A has a coupon rate of 8.00 % and a yield to maturity of 9.00
Two annual coupons bonds both mature in 4 years. Bond A has a coupon rate of 8.00% and a yield to maturity of 9.00%. Bond B has a coupon rate of 9.00% and a yield to maturity of 8.00%. Select one of the following statements that is true about Bond A and Bond B.
Bond A is $967.60 greater than Bond B | ||
Bond B is $1033.12 greater than Bond A | ||
The price difference between Bond A and Bond B is $65.52 | ||
The price difference between Bond A and Bond B is $2000.72 | ||
All of the Above |
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