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You are considering two bonds. Bond A has an 4% annual coupon while Bond B has a 2% annual coupon. Both bonds have a 3%
You are considering two bonds. Bond A has an 4% annual coupon while Bond B has a 2% annual coupon. Both bonds have a 3% YTM, which is expected to stay the same. Which of the following statements is CORRECT? Select one: O a. The price of Bond A will decrease over time, but the price of Bond B will increase over time. O b. The prices of both bonds will stay the same. O c. The prices of both bonds will increase but Bond A will increase at a faster rate. O d. The prices of both bonds will increase by 3% per year
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