Suppose that when the Province of Ontario offered the bond for $76.04, the Province of Alberta had

Question:

Suppose that when the Province of Ontario offered the bond for $76.04, the Province of Alberta had offered an essentially identical security. Do you think it would have a higher or lower price? Why? The Question refer to a stripped coupon issued by the Province of Ontario.

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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