Suppose the average-sized institutional trader above buys both bonds now at t. He will earn A. Higher actual return in B

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answerhappygod
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Suppose the average-sized institutional trader above buys both bonds now at t. He will earn A. Higher actual return in B

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Suppose the average-sized institutional trader above buys both
bonds now at t. He will earn
A. Higher actual return in Bond B when the bond matures
B. The same actual return in both bonds at maturity
C. Negative return in Bond B
D. Higher actual return in Bond A when the bond matures
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