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Use the information below to compare and explain the differences in Yield to Maturity (YTM) of the four bonds presented. Secondly, what would you expect
- Use the information below to compare and explain the differences in Yield to Maturity (YTM) of the four bonds presented. Secondly, what would you expect for the price relationships of the four bonds presented (i.e. which is least expensive to most expensive) and why? Assume they were issued at the same time and coupons are of similar characteristics.
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| Bond A | Bond B | Bond C | Bond D |
| Issuer | Corporation | Sovereign Government (Republic of Blue) | Corporate | Sovereign Government (Republic of Blue) |
| YTM | 7% | 5% | 9% | 3% |
| Maturity | 5 Years | 5 Years | 5 Years | 5 Years |
| Coupon Denomination | Domestic | Foreign | Domestic | Domestic |
| Price | ? | ? | ? | ? |
| Credit Rating | AAA | AA | A | AAA |
| Benchmark | 3% | 3% | 3% | 3% |
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