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Question 15 1 pts Suppose you must choose between the following two investment alternatives: A) a 2-year Treasury security promising a yield-to-maturity of 4% and

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Question 15 1 pts Suppose you must choose between the following two investment alternatives: A) a 2-year Treasury security promising a yield-to-maturity of 4% and B) a Treasury bond with 5 years remaining to maturity that pays a 5% annual coupon and is currently selling for $958 per $1,000 face value. Assume that you would be selling the 5-year bond after two years, and that interest rates on similar bonds at the end of the two years are predicted to be about 7%. Assuming annual coupon payments, the 2-year Treasury security offers the higher expected return over the next two years. O the two securities offer the same return over the next two years, so you are indifferent o the 5-year Treasury bond offers the higher expected return over the next two years. O it is impossible to determine which security offers the higher expected return over the next two years.

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