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You just purchased a 12-year, $1,000 par bond with a 5.5% semi-annual coupon at a price of $895. If the yield on the bond remains

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You just purchased a 12-year, $1,000 par bond with a 5.5% semi-annual coupon at a price of $895. If the yield on the bond remains constant, what should be the price of the bond in five years? A. $928.87 B. $870.84 C. $945.93 D. $863.10 Bond A has a 10-year maturity, a 3.5% semi-annual coupon and a yield of 5%. Bond B has a 10-year maturity, a 3.8% semi-annual coupon and a yield of 5%. What must be true about the two bonds? A. Bond A is more valuable than bond B. B. Bond B has greater default risk than bond A C. Bond A has greater default risk than bond B D. Bond A has greater interest-rate risk than bond B E. None of the above is necessarily true

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