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15 ) Lee is considering buying one of two newly -issued bonds . Bond A is a twenty - year , 7.59 6 coupon bond

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15 ) Lee is considering buying one of two newly -issued bonds . Bond A is a twenty - year , 7.59 6 coupon bond that is non - callable Bond B is a twenty - year , 8 . 25% bond that is callable after two years . Both bonds are comparable in all other aspects . Lee plans on holding his bond to maturity . What should Lee do if he feels that interest rates are at interest rat going to decline by 2% in the near future and then remain relatively stable thereafter table thereafter ? A ) purchase Bond B B ) negotiate a higher rate on Bond A ( ) purchase neither A nor B at this time D ) we cannot determine from the information given E ) purchase Bond A

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