An investor has just purchased two bonds with the same


An investor has just purchased two bonds with the same yield to maturity.

1. 10 years 6% per annum (payable twice a year)

2. 10 year zero coupon bond

If the YTM is 15% per annum, at what discount or premium is each of the bonds selling at?

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Financial Management: An investor has just purchased two bonds with the same
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