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Louis Winthorpe III was evaluating investment opportunities to determine what he should do with his money. One of the investments that he was evaluating was
Louis Winthorpe III was evaluating investment opportunities to determine what he should do with his money. One of the investments that he was evaluating was investing $10,000,000 in US corporate securities (recall that US corporates pay interest semi-annually). Oracle just priced a $7bn in US investment grade securities with differing maturities. They priced the following: Louis likes the company and wants to invest his money in one of these securities (all have face value of $1,000 per bond). 1. If he wants to invest his money in the bond that offers the greatest yield to maturity, which bond should he invest in? 2. If the yield to maturity on the ORCL 5.8% ' 25 was 5.43%, what would the price of the security be
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