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USE EXCEL TO SOLVE THE FOLLOWING: Exercise 1: One bond has a coupon rate of 8%, another a coupon of 12%. Both bonds have 10-year
USE EXCEL TO SOLVE THE FOLLOWING:
Exercise 1: One bond has a coupon rate of 8%, another a coupon of 12%. Both bonds have 10-year maturities and sell at a yield to maturity of 10%. If their yields to maturity next year are still 10%, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return?
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