5. (3 points) Three investors, B, L and T, are interested in purchasing the same...
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5. (3 points) Three investors, B, L and T, are interested in purchasing the same bond. Bis willing to pay $1,050 for the bond, L $980 and T $1,000. Rank the three investors in terms of their yields to maturity, from largest to smallest. 6. (3 points) You own three bonds with different coupon rates. Bond Q's is 8%, R's is 10% and T's is 6%. The yield to maturity for Q increases, the yield to maturity for R decreases, and the yield to maturity for T also decreases. What happens to the price of: a. Bond Q * Bond R c. Bond T
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