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Note: It is recommended that you save your response as you complete each question Question 3 (10 points) Bonds A and B both have the same coupon rate, the same number of years left to maturity, and the same YTM. Bond A is a semiannual bond and bond B is an annual bond. Which bond will have lower price? 1) Bond A 2) Bond B Save Next Page Page 3 of 20 Previous Page Save All Responses Go to Submit Quiz

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Answer #1

Bond A will have a lower price because the bond with semi annual coupon payments has a lower present value as compared to the bond with annual coupon payments.

So correct answer is 1) bond A

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