Suppose you are considering investing in either of two aaa


Suppose you are considering investing in either of two AAA corporate bonds. One will provide you with an annual 8% coupon payment, while the other only pay's a 6% coupon.  Assume current yields for AAA bonds are 7%. Explain why your yield to maturity will be 7%, regardless of which bond you purchase?

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Financial Management: Suppose you are considering investing in either of two aaa
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