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Jens Martel has a choice of two 5-year bonds and is seeking the highest return. Given the following information about each bond, which one should
Jens Martel has a choice of two 5-year bonds and is seeking the highest return. Given the following information about each bond, which one should he choose?
- Bond A's coupon is 3.75% and is priced at 101.30 per 100
- Bond B's coupon is 3.05% and is priced at 98.20 per 100
| A. | Bond A. | |
| B. | Bond B. | |
| C. | Both bonds have the same return. |
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Financial Management Core Concepts
Authors: Raymond Brooks
3rd Edition
0133866742, 9780133866742
