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Homework answers / question archive / 1) Which bond will have the highest price? a) 5 year, 6% Coupon, 6% Yield b) 10 year, 6% Coupon, 6% Yield c) Neither d) Cannot determine from information provided
1) Which bond will have the highest price?
a) 5 year, 6% Coupon, 6% Yield
b) 10 year, 6% Coupon, 6% Yield
c) Neither
d) Cannot determine from information provided.
2) A 6.25 percent coupon bond (par value=$1,000) with 16 years left to maturity is offered for sale at $1,015.25. Assuming interest payments are semiannual, what is the yield to maturity of the bond?
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