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Question 15 6 pts City Bank has just completed its bond issuance in September 2020 where each bond has a face value of $1,000 with
Question 15 6 pts City Bank has just completed its bond issuance in September 2020 where each bond has a face value of $1,000 with payments to investors on a monthly basis at a coupon rate of 8% p.a. Country Bank also had a bond issuance with each bond having a face value of $1,500 with payments to investors on a monthly basis at a coupon rate of 6% p.a. at the same time. Both bonds have exactly the same risk and will mature in September 2028. Other similar bonds have a yield of 9% p.a. compounded annually. City Bank's bonds are currently trading at $934.17 and Country Bank's bond is trading at $1,425.63. What actions should a rational investor take in such a situation? HTML Editora BI V A - A - IEE311xx, VX v V D 1 12pt
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