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3) 6 +1 points Consider the followmg three bonds which you bought today at the listed purchase prices. Bond A: Purchase price $14,563 with

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3) 6 +1 points \" Consider the followmg three bonds which you bought today at the listed purchase prices. Bond A: Purchase price $14,563 with Face Value of $15,000 in 1 year. Bond B: Purchase price of $13,629, Face Value of $15,000 in 10 years and pays annual coupon payments of $250 Bond C: Purchase price of $8,333 and an annual coupon payment of $250 forever a lyear from now you want to sell these bonds: For each of these bonds calculate price after 1 year and the Holding period Return. Assume the interest rate after 1 year is 5% 1; Which bond would you prefer to hold? Why? a: A price after 1 year is 15000 (15000-14563)/14563= B price after 1 year is 250/0.05=

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