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In addi h cue s ha )Consider now the following 2 bonds issued by the same borrower, with an identical structure bu with different coupons,

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In addi h cue s ha )Consider now the following 2 bonds issued by the same borrower, with an identical structure bu with different coupons, e and e' with ee In which bonds would you consider investing your money? Why? Ie he sam sKa exept " " ltc 444) J cho Hu Ist ben d ed.ng meng.~ 1 us n ke P Which one order to replicate a bond giving zero cash flow from year 1 to year n-1 but only one single cash flovw at year n? (this combination of 2 bonds is called a synthetic zero coupon bond and is used when investors cannot find in the market bonds such as E and F above one buy, which one sell, and in what proportions i In addi h cue s ha )Consider now the following 2 bonds issued by the same borrower, with an identical structure bu with different coupons, e and e' with ee In which bonds would you consider investing your money? Why? Ie he sam sKa exept " " ltc 444) J cho Hu Ist ben d ed.ng meng.~ 1 us n ke P Which one order to replicate a bond giving zero cash flow from year 1 to year n-1 but only one single cash flovw at year n? (this combination of 2 bonds is called a synthetic zero coupon bond and is used when investors cannot find in the market bonds such as E and F above one buy, which one sell, and in what proportions

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