The U.S. government offers two bonds: one selling to yield 6.5% and the other to yield 8.5%.

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The U.S. government offers two bonds: one selling to yield 6.5% and the other to yield 8.5%. Why would one bond sell for a lower yield if the originator is the same on both bonds?

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Question Posted: Mar 13, 2018 08:37 AM

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The U.S. government offers two bonds: one selling to yield 6.5% and the other to yield 8.5%.

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Foundations of Financial Management

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