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Business, 09.11.2019 04:31 parapraxis

Assume that an investor is looking at two bonds: bond a is a 20-year, 9% (semiannual pay) bond that is priced to yield 10.5%. bond b is a 20-year, 8% (annual pay) bond that is priced to yield 7.5%. both bonds carry 5-year call deferments and call prices (in 5 years) of $1,050. which bond has the higher current yield?

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Assume that an investor is looking at two bonds: bond a is a 20-year, 9% (semiannual pay) bond that...
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