You are considering investing in one of these bonds: Coupon Rate Time to Maturity Market Price Bond
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Question:
You are considering investing in one of these bonds:
Coupon Rate | Time to Maturity | Market Price | |
Bond A | 12% | 8 | 80 |
Bond B | 10% | 6 | 70 |
The face value of the bonds is Rs. 100. Find the YTM of these bonds. Which of these two bonds would you prefer to invest in.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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