One company has two outstanding publicly traded bonds the


One company has two outstanding publicly traded bonds. The two bonds will both mature in ten years and have the same coupon rate. One of the bonds has a sinking fund; the other one does not. Which bond will have the higher yield to maturity today?

The bond with the sinking fund

The bond without the sinking fund

It depends on the shape of the yield curve

Both bonds will have the same YTM because they were issued by the same company

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Financial Management: One company has two outstanding publicly traded bonds the
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