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Author Question: An investor is considering buying one of two 10-year, $1,000 face value bonds: Bond A has a 15% ... (Read 50 times)

lauraleepop

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on: Aug 7, 2023
An investor is considering buying one of two 10-year, $1,000 face value bonds: Bond A has a 15% annual coupon, while Bond B has a 10% annual coupon. Both bonds have a yield to maturity of 13%, which is expected to remain constant for the next 10 years. Which statement regarding these bonds is correct?

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Bond B has a higher price than Bond A today, but one year from now the bonds will have the same price.


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Bond A has a higher price than Bond B today, but one year from now the bonds will have the same price.


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Bond B’s current yield is greater than 13%.


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Two years from now, Bond A’s price will be lower than it is today.

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Marked as best answer by lauraleepop on Aug 7, 2023

labrinker

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Reply #1 on: Aug 7, 2023
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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lauraleepop

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

bblaney

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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