Bond A is a 10-year U.S. Treasury bond. Bond B is a 10-year corporate bond. True or

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Bond A is a 10-year U.S. Treasury bond. Bond B is a 10-year corporate bond. True or false?
a. If you hold bond A to maturity, your return will be equal to the yield to maturity.
b. If you hold bond B to maturity, your return will be equal to or less than the yield to maturity.
c. If you hold bond A for 5 years and then sell it, your return could be greater than the yield to maturity.
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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