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You are trying to price two bonds that have the same maturity and par value but different coupon rates. Both bonds mature in 12 years
You are trying to price two bonds that have the same maturity and par value but different coupon rates. Both bonds mature in 12 years and at maturity both bonds return the par value of $1,000. Bond A has a coupon rate of 2% and a yield to maturity of 6%. Bond B has a coupon rate of 6% and a yield to maturity of 2%.
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