Two bonds a and b are equivalent in every way but convexity, Ask an Expert

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Two bonds, A and B, are equivalent in every way but convexity (they are of equivalent credit quality and would have exactly the same duration if they were forced to sell at a price that produced the same yield to maturity.) However, Bond A has more convexity.

Which bond has the greater yield to maturity? Why?

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Financial Management, Finance

Category:- Financial Management
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