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Which bond should have the higher yield to maturity

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Reference no: EM132752287

Question: Consider the following pair of bonds which are alike except for the characteristicslisted.

Bond A: 8% (coupon rate), 5 years (maturity)

Bond B: 6% (coupon rate), 8 years (maturity)

Discuss which bond should have the higher yield to maturity.

Reference no: EM132752287

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