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Business, 23.03.2021 01:50 navjitdosanjh20

Xerox just issued two bonds. The 1st Bond is a zero coupon bond with 30 year to maturity. The 2nd Bond is a 10% coupon bond with 10 year to maturity. Assume that other characteristics of these two bonds are the same (e. g., the same YTM). You expect that the Fed will announce a decrease of benchmark interest rate. Which bond do you want to purchase in order to earn higher return around the incoming interest rate change

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Xerox just issued two bonds. The 1st Bond is a zero coupon bond with 30 year to maturity. The 2nd Bo...
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