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An investor evaluates the following three bonds: Tenor Coupon Price Bond A 1 2 years 5 . 5 % 9 3 . 2 4 Bond

An investor evaluates the following three bonds:
Tenor Coupon Price
Bond A 12 years 5.5%93.24
Bond B 5 years 8.0%102.11
Bond C 12 years 8.0%108.93
If the investor forecasts a decrease in rates, determine which of the bonds the investor should purchase and explain the reason for why that is the appropriate bond.

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