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You Are Considering Two Bonds

Question 42

Multiple Choice

You are considering two bonds.Both have semi-annual,8 percent coupons,$1,000 face values,and yields to maturity of 7.5 percent.Bond S matures in 4 years and Bond L matures in 8 years.What is the difference in the current prices of these bonds?


A) $10.51
B) $11.33
C) $11.52
D) $12.67
E) $12.88

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