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In 2021. You are thinking to invest in two investments opportunities. The first investment opportunity called Alfa is a 20 years bond issued by Gooble

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In 2021. You are thinking to invest in two investments opportunities. The first investment opportunity called Alfa is a 20 years bond issued by Gooble Corp. The face value of the bond is $1000 with 8% coupon paid yearly. It is selling at $1350. The current borrowing rate at that period is 5.5% per annum. The second investment called Beta is Lending to Pikachu for 20 years with annual payment of $110. For Pikachu you are thinking of 5% per annum on return of investment since he might fly away. What is the Duration of the bond? Would you buy this bond? Which investments has greater present value? a. None of the answers is correct b. 11.95 Years, No, Alfa c 11.72 Years, Yes, Beta d. 11.95 Years, Yes. Alfa e. 11.72 Years. Yes, Alfa f. 11.95 Years, Yes, Beta g 11.72 Years, No. Beta h. 11.95 Years, No Beta 11.72 Years. No, Alfa

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