Two outstanding publicly traded bonds

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One company has two outstanding publicly traded bonds. The two bonds will both mature in ten years and have the same coupon rate. One of the bonds is convertible into common stock; the other one is not convertible. Which bond will have the higher yield to maturity today?

The convertible bond

The non-convertible bond

Both bonds will have the same YTM because they were issued by the same company

It depends on the shape of the yield curve

Reference no: EM13808677

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