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Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 8%. Bond Face
Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 8%.
Bond | Face Value | Annual Coupon Rate | Maturity | Price |
A | $1,000.00 | 4% | 1 Year | $990 |
B | $1,000.00 | 7.50% | 17 Years | $990 |
C | $1,000.00 | 8.50% | 25 Years | $990 |
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