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Question
Both Investor A and Investor B are considering the purchase of Corporation FJR bonds. The bonds are selling at a price of $1,100 each. Investor A decides to buy the bonds and Investor B does not buy the bonds.A) Investor A must have a required return lower than the required return for Investor B.
B) The yield to maturity for Investor A must be higher than the yield to maturity for Investor B.
C) The yield to maturity for Investor A must be less than the yield to maturity for Investor B.
D) The yield to maturity for this bond must be higher than the coupon rate.
Answer
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