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Business, 16.03.2020 18:48

Bond X and bond Y both are issued by the same company. Each of the bonds has a maturity value of $100,000 and each matures in 10 years. Bond X pays 8% interest while bond Y pays 9% interest. The current market rate of interest is 8%. Which of the following is correct? Bond X sells for more than bond Y. Both bonds sell at a discount. Both bonds sell for the same amount. Bond Y sells for more than bond X.

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