Which of the two bonds have the highest price

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Problem 1: Suppose we have two bonds A and B, both with 5 percent coupon rate and the same yield to maturity of 3 percent, but with different maturities of 5 years for bond A and 10 years for bond B, which of the two bonds have the highest price? Verify your answer by calculating the prices and explain the reason behind the difference.

Reference no: EM132918990

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