Question: The same firm issues two different bonds. The bonds are identical in every respect (including the same semiannual coupon rate) except for their time to
The same firm issues two different bonds. The bonds are identical in every respect (including the same semiannual coupon rate) except for their time to maturity. Bond A matures in 7 years and Bond B matures in 5 years. The yield to maturity is equal to the coupon rate for both bonds. Which bond has a higher price? a. Bond A b. Bond B c. Both have the same value. d. One must know YTM and coupon rate to answer the question. e. One must know the compounding frequency to answer the question
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