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Suppose you can only choose from the following correctly priced bonds Where coupon paying the coupon is paid annually. Which would you Investment if you
Suppose you can only choose from the following correctly priced bonds Where coupon paying the coupon is paid annually. Which would you Investment if you expect interest rates to decrease? 14 year, 8% coupon bond 13 year, 0% coupon bond Perpetuity with an 8% yield 8% 8% 8% 14 year, 2% coupon bond YTM 8% Coupon Rate 2% Time to Maturity 14 8% 0% 8% Perpetuity 14 13 14 year, 8% coupon bond 13 year, 0% coupon bond Perpetulty with an 8% yield 14 year 2% coupon bond
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