Solved

You Are Considering Two Bonds

Question 64

Multiple Choice

You are considering two bonds. Both have semiannual, 6% coupons, $1,000 face values, and yields to maturity of 6.5%. Bond S matures in 5 years and Bond L matures in 10 years. What is the difference in the current prices of these bonds?


A) $12.51
B) $12.67
C) $13.52
D) $14.67
E) $15.29

Correct Answer:

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