Three 1000 face value bonds that mature in 10 years have


Three $1,000 face value bonds that mature in 10 years have the same level of risk, hence their YTMs are equal. Bond A has an 8% annual coupon, Bond B has a 10% annual coupon, and Bond C has a 12% annual coupon. If Bond B sells at par, what is the YTM on the three bonds?

Pick one

A. 12%

B. 8%

C. There is not enough information to answer the question.

D. 10%

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