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Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity;

Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value bond paying 8 percent interest semiannually. The market price of the bond is $850.

Select one of the following choices if you do not already own the bond

A.

You will not buy the bond

B.

You will buy the bond

C.

You will be indifferent to the buy and no buy decision.

D.

As a rational investor, I need more information to make a decision

E.

None of the above

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