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Evaluate which of the options would be your best investment bases solely on the yield to maturity criterion. Option A: Purchase a $50,000 discount bond
Evaluate which of the options would be your best investment bases solely on the yield to maturity criterion.
Option A: Purchase a $50,000 discount bond selling for $37,777 and maturing in 6 years.
Option B: Purchase a $75,000 coupon bond with a 6.65% coupon rate selling for $72,800 and also maturing in 6 years.
Option C: Lend a buddy $30,000 with promised repayments of $6050.00 in 2 years, $14,641.00 in 4 years, and $26,573.42 in 6 years. ( Note the payment represent 1/6,1/3,1/2 of original loan payment
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