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QUESTION
Bond A matures in 7 years, meaning there are 14 coupon payment periods remaining. Bond B matures in 3 years, meaning only 6 coupon payment periods...
Bond A matures in 7 years, meaning there are 14 coupon payment periods remaining. Bond B matures in 3 years, meaning only 6 coupon payment periods remain. As a result of these differences in maturities, you know that...
Bond A must have a higher YTM than bond B.
Bond B will be priced at a premium.
Bond A is exposed to higher interest rate risk.
