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Two bonds are identical in risk, maturity date, and face value, but one coupon rate is 10% and the other is 8%. The market yield
Two bonds are identical in risk, maturity date, and face value, but one coupon rate is 10% and the other is 8%. The market yield on similar bonds is 9%.
A. The 10% coupon bond would be selling at a premium and the 8% coupon bond would be selling at a discount. B. At the maturity date, both bonds would be selling at face value. C. The 10% coupon bond would be selling at a discount and the 8% coupon bond would be selling at a premium. D. both A and B.
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