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John and Karen are both considering buying a corporate bond with a coupon rate of 8%, a face value of $1,000, and a maturity date
John and Karen are both considering buying a corporate bond with a coupon rate of 8%, a face value of $1,000, and a maturity date of January 1, 2025. Which of the following statements is most correct? Select one: a. John and Karen will only buy the bonds if the bonds are rated BBB or above. b. John may determine a different value for a bond than Karen because each investor may have a different level of risk aversion, and hence a different required return. C. Because both John and Karen will receive the same cash flows if they each buy a bond, they both must assign the same value to the bond. h d. If John decides to buy the bond, then Karen will also decide to buy the bond, if markets are efficient
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