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Question 7 2 pts You are interested in buying one corporate bond and your broker has offered two corporate bonds for you to consider: 1.
Question 7 2 pts You are interested in buying one corporate bond and your broker has offered two corporate bonds for you to consider: 1. Bond A: paying half-yearly coupons, with a maturity date of 1 June 2035, an annual coupon rate of 12% and a bond flat price of $110.00 2. Bond B: paying quarterly coupons, with a maturity date of 1 June 2045, an annual coupon rate of 8% and a bond flat price of $60.00 If the settlement date of both bonds is 1 June 2021, which of these bonds represents the best investment opportunity? Bond B O Bond A Bond A because its redemption value is higher than Bond B 0 Both Bond A and Bond B as they are identical
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