6.7 If you are right in your forecast about 1-year rates, then an investment in 1-year bonds...
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6.7 If you are right in your forecast about 1-year rates, then an investment in 1-year bonds will produce $1,000 1.05 x 1.08 = $1,134.00 by the end of 2 years. You would do better to invest in the 1-year bond.
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Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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