Question
Which bond you would rather be holding? (assuming no default risk) A) a discount bond with face value of $1000 that matures in 1 year
Which bond you would rather be holding? (assuming no default risk)
A) a discount bond with face value of $1000 that matures in 1 year and currently sells for $900
B) a two year 10% coupon bond with a face value of $1000 that currently sells for $1000 and has one year left to maturity
C) a discount bond with face value of $1000 that matures in 2 years and currently sells for $900
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
