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Assume you are a financial consultant who specializes in fixed income investments. You have been recently hired to advise Ninjas R US Protfolio. Ninja has
Assume you are a financial consultant who specializes in fixed income investments. You have been recently hired to advise Ninjas R US Protfolio. Ninja has three U.S. treasury bonds that they are considering. The company is extremely conservative and wants to minimize all risk.
| Bond | Type | Par Value | Coupon | Yield to Maturity | Maturity (years) |
| A | Zero Coupon | $1000 | 8% | 10 | |
| B | Coupon | $1000 | 12% | 8% | 10 |
| C | Coupon | $1000 | 5% | 8% | 10 |
What bond do you recommend they buy? What bond is the riskiest? You must quantitatively justify your answers.
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