Bonds A and B both have $10,000 face values, 10% coupon rates, and sell with yields-to-maturity of

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Bonds A and B both have $10,000 face values, 10% coupon rates, and sell with yields-to-maturity of 9%. However, bond A has a 20-year term-to-maturity, whereas bond B has a 5-year term-to-maturity. Calculate the prices of the two bonds. Despite having the same yields, why is one bond's price different from the other's?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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