Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a

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Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a current yield of 15% or a one-year bond selling for $800 with a current yield of 5%?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:14 AM

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Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a

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It depends on the case if coupon payment is not attached with the Oneyear bond then its yie...View the full answer

Economics of Money, Banking and Financial Markets

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