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Author Question: You are considering two bonds. Bond A has a 5% annual coupon while Bond B has an 11% annual coupon. ... (Read 352 times)

olsonmanny@gmail.com

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You are considering two bonds. Bond A has a 5% annual coupon while Bond B has an 11% annual coupon. Both bonds have an 8% yield to maturity, and the YTM is expected to remain constant. Which of the following statements is correct?

The price of Bond B will decrease over time, but the price of Bond A will increase over time.


The price of Bond A will decrease over time, but the price of Bond B will increase over time.


The prices of both bonds will remain unchanged.


The prices of both bonds will decrease over time, but the price of Bond B will decrease by more.



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Marked as best answer by olsonmanny@gmail.com on Aug 7, 2023

psuniv

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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olsonmanny@gmail.com

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it


Dnite

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Reply 3 on: Yesterday
Excellent

 

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