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samualson samualson
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5 years ago
Two bonds are identical except for their maturity. The bonds have a coupon rate that is greater than their yield to maturity. Which of the following is true when comparing the two bonds?
A) The longer maturity bond has a greater premium (is priced farther above par).
B) The longer maturity bond has a smaller premium (is priced above par but closer to par).
C) The longer maturity bond has a greater discount (is priced farther below par).
D) The longer maturity bond has a smaller discount (is priced below par but closer to par).
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guzmanguzman
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#1
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5 years ago
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samualson Author
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5 years ago
Correct Slight Smile TY
africa143
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Yesterday
Brilliant ツ
novae
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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