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You are looking at two bonds identical in every way except for their coupons. Both have 12 years to maturity and face value of $1,000,
You are looking at two bonds identical in every way except for their coupons. Both have 12 years to maturity and face value of $1,000, and both make send an
payments Bond A has a 10% coupon rate and sells for $934.24. Bond B has a 12% coupon rate.
What is the price of and B?
a $582.59
b. $1,000.00
c. $1,065.76
d. $1,137.99
e $1,304.94
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
