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Considering an investment in two different bonds

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You are considering an investment in two different bonds. One bond matures in six years and has a face value of $1,000. The bond pays an annual coupon of 8.5% and has a 7% yield to maturity. The other bond is a 5-year zero coupon bond with a face value of $1,000 and has a yield to maturity of 7%.

Reference no: EM133111749

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