Question: Bond A is a two year zero coupon bond with par value of $1000 and price of $950. Bond B is a three year 7%

Bond A is a two year zero coupon bond with par value of $1000 and price of $950. Bond B is a three year 7% coupon bond with par value of $1000 and price of $1000.

Show that a bond sells at par if and only if the coupon rate equals the yield.

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