Suppose you have two bonds bond a has a 1000 face value a 5, Accounting Basics

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Suppose you have two bonds bond a has a 1000 face value a 5

Question: Suppose you have two bonds. Bond A has a $1,000 face value, a 5% coupon rate, and a current market price of $900. Bond B has a $1,000 face value, a $50 annual coupon payment, and a current market price of $1,050. Which of these two bonds has the higher yield to maturity? Why?

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Accounting Basics: Suppose you have two bonds bond a has a 1000 face value a 5

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