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Which of the following securities should sell at a greater price? a. A 12-year Canada bond with a 12% coupon rate versus a 12-year Canada
Which of the following securities should sell at a greater price? a. A 12-year Canada bond with a 12% coupon rate versus a 12-year Canada bond with a 13% coupon rate. 13% Canada bond 12% Canada bond b. A 6-month maturity call option with an exercise price of $40 versus a 6-month call on the same stock with an exercise price of $35. 6-month maturity call option with an exercise price of $35 6-month maturity call option with an exercise price of $40 c. A put option on a stock selling at $105, or a put option on another stock selling at $115 (all other relevant features of the stocks and options may be assumed to be identical). Put option price $105 Put option price $115 d. A 6-month T-bill with a discount yield of 6.2 percent versus a 6-month T-bill with a discount yield of 6.3%. 6-month T-bill with a yield of 6.2 percent 6-month T-bill with a yield of 6.3 percent
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