Which bond has higher yield to maturity

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Reference no: EM131853583

1. You have entered a partnership where you own 10% of the business. Your company is involved in a lawsuit and must pay $2 million in damages. If your business partner can only pay $500,000 toward the damages, you are responsible for:

A. nothing directly, because your personal assets are separate from the business assets

B. only $200,000 beecause you only owned 10% of the business

C. the remaining $1.5 million

2. A corporate bond sells at par and has a current yield equal to 5.625%. Another bond sells for $10,075, has a face value of $10,000, and has a coupon rate equal to 5.5%. Which bond has a higher yield to maturity?

Reference no: EM131853583

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