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3. Which of the following bonds should an intermed investorsking the righest possible return and lowest risk, choose? Assume nisk properties of both bonds are

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3. Which of the following bonds should an intermed investorsking the righest possible return and lowest risk, choose? Assume nisk properties of both bonds are about the same Use duration to arrive at your answer, and sume compounding and an 8 percent discount rate. Explain why duration is the preferred method to select bonds and how you arrived at your answer will mature in the Bond A will pay $200 every year beginning years from now paying $10,000, Bond B will pay $250 every year beginning one year from now and will mature in four years from now paying $1,000, 3. Which of the following bonds should an informed investor, seeking the highest possible return and lowest risk, choose? Assume risk properties of both bonds are about the same. Use duration to arrive at your answer, and assume annual compounding and an 8 percent discount rate. Explain why duration is the preferred method to select bonds and how you arrived at your answer. Bond A will pay $200 every year beginning one year from now and will mature in three years from now paying $10,000. Bond B will pay $250 every year beginning one year from now and will mature in four years from now paying $1,000

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