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Two U . S . T - bills will mature in 1 year from today. Bond # 1 pays $ 1 0 2 . 3
Two US Tbills will mature in year from today.
Bond # pays $ per $ of face value.
Bond # pays $ per $ of face value.
Which bond # or # pays out at a higher return to the buyer?
Group of answer choices
Bond # pays a higher return than Bond #
Bond # pays a lower return that Bond #
Bond # pays a higher return that Bond #
Bonds # & # each provide the same rate of return to the buyer as prices adjust to equalize returns.
James Bond is paid the most, but he won't live long enough to enjoy it
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