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Question
Two investors are considering the purchase of Corporation LMQ bonds. The bonds are selling at their par value of $1,000 with a coupon rate of 9%. Investor A decides to buy the bonds and Investor B does not buy the bonds.A) Investor A must have a required return higher than the bond's yield to maturity.
B) The yield to maturity for Investor A must be higher than the yield to maturity for Investor B.
C) Investor B must have required return lower than the bond's yield to maturity.
D) Investor A must have a required return less than or equal to 9%.
Answer
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