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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. Why?

a. The yield to maturity for investor A must be higher than the yield to maturity for investor B.

b. Investor A must have a required return less than or equal to 9%.

c. Investor A must have a required return higher than the bonds yield to maturity.

d. Investor B must have required return lower than the bonds yield to maturity.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91775348

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