Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Danno is trying to decide which of two bonds to buy. Bond H is a 10 percent coupon, 10-year maturity, R1,000 par, January 1, 2000 issue paying annual interest. Bond F is a 10 percent coupon, 10-year maturity, R1,000 par, January 1, 2000 issue paying semi-annual interest. The market required return for each bond is 10 percent. When using
A. there is no difference in price.
B. the price of F is greater than H.
C. the price of H is greater than F.
D. he needs more information before determining the prices.
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