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Pricing of bond x and bond y

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Bond X and Bond Y were issued at a premium to par value three years ago. Bond X matures in five years, and Bond Y matures in ten years. Both bonds carry the same credit rating. Bond X has a coupon of 8.60%, and Bond Y has a coupon of 9.00%. Currently the required yield for both bonds is 8.80%. Which of the following is correct regarding the pricing of Bond X and Bond Y?

 

Reference no: EM132932864

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