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Treasury yield % 3.5% 3% 2.5% 2% 1.5% 1% 0.5% 0% 1. Boo is a bond portfolio manager and her bond portfolio consists of the
Treasury yield % 3.5% 3% 2.5% 2% 1.5% 1% 0.5% 0% 1. Boo is a bond portfolio manager and her bond portfolio consists of the following 4 bonds: Treasury Yield Curve Current-Apr. 2019 10Y 20Y Apr. 2018 30Y Curufocus.com Bond A: 2-year bond with 70% coupon rate, Bond B: 1.5-year bond with 10% coupon rate, Bond C: 5-year bond with 5% coupon rate, 2 % yield to maturity Bond D: 8-year bond with 0% coupon rate, 8% yield to maturity All bonds are semi- annual paying bonds with $1,000 par value. Given that Boo currently observes the yield curve as seen on the left, and she is considering selling most of the existing bonds such that her portfolio will only have one type of bond remaining, which 1 of the above 4 bonds (A, B, C, or D) would you recommend Boo to keep and more importantly, why
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