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Vladimir [108]
2 years ago
7

Three $1,000 face value, 10-year, noncallable, bonds have the same amount of risk, hence their YTMs are equal. Bond 8 has an 8%

annual coupon, Bond 10 has a 10% annual coupon, and Bond 12 has a 12% annual coupon. Bond 10 sells at par. Assuming that interest rates remain constant for the next 10 years, which of the following statements is CORRECT?
a. Since the bonds have the same YTM, they should all have the same price, and since interestrates are not expected to change, their prices should all remain at their current levels untilmaturity.
b. Bond 12 sells at a premium (its price is greater than par), and its price is expected to increaseover the next year.
c. Bond 8 sells at a discount (its price is less than par), and its price is expected to increase overthe next year.
Business
1 answer:
Agata [3.3K]2 years ago
8 0

Answer:

step by step Explanation:

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Answer:

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<h3>Answer :</h3>

<em>Less than</em>

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7 0
2 years ago
In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks
evablogger [386]

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The correct answer is option D.

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This means that the price of CheapFizz cans will be more than 75 cents after the deal.

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