Bonds [3] The current interest rate is 7%. Given the opportunity to invest in one of the

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Bonds [3]

The current interest rate is 7%. Given the opportunity to invest in one of the three bonds listed below, which would you buy? Sell short?

Bond Face Annual Maturity Price value coupon rate A

B C

1000 1000 1000 4%

7.5%

8.5%

1 year 17 years 25 years 990 990 990

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Lectures On Corporate Finance

ISBN: B00RGENH5I

1st Edition

Authors: Peter L Bossaerts ,Bernt Arne Odegaard

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