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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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