johnsont43301 johnsont43301

25-05-2023
Business

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Consider two bonds. Bond A has a $50 coupon, payable at the end of each year. Bond B has two semi-annual $25 coupons, one payable in mid-year and the second at the end of the year. Both bonds are otherwise identical, with the same principle and maturity. Would bond A have a higher, lower or the same price as Bond B? Why?

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