Question: Consider two bonds, A and B without default risk. They both have a YTM of 10%, three years until maturity time, and a face value
Consider two bonds, A and B without default risk. They both have a YTM of 10%, three years until maturity time, and a face value of $1000. Bond A is a premium bond and bond B is a discount bond. Assume that YTM remains at 10% for both bonds throughout the next year. Which of the following statement is correct?
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