Question: Two bonds are identical in risk, maturity date, and face value, but one has a coupon rate is 10% and the other has a rate

Two bonds are identical in risk, maturity date, and face value, but one has a coupon rate is 10% and the other has a rate at 8%. The market yield on similar bonds is 9%.

The 10% coupon bond would be selling at a discount and the 8% coupon bond would be selling at a premium.

The 10% coupon bond would be selling at a premium and the 8% coupon bond would be selling at a discount.

At the maturity date, both bonds would be selling at face value.

The 10% coupon bond would be selling at a premium and the 8% coupon bond would be selling at a discount" and "At the maturity date, both bonds would be selling at face value".

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