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Assume that you are looking at two investment choices. Choice A. Invest in a 30 year bond with a YTM of 4.3% or, Choice B.
- Assume that you are looking at two investment choices. Choice A. Invest in a 30 year bond with a YTM of 4.3% or, Choice B. invest in a 29 year bond and then in a 1-year bond with a YTM of 4.5%. If the actual YTM on the 29-year bond was 4.2% which option would you have chosen? Type your solution otherwise a zero grade will be assigned even if your answer is correct.
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