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You are the CFO of Sam's Corp, and need to issue new debt to fund Sam's Corp's investment in new warehouses. You strongly believe that

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You are the CFO of Sam's Corp, and need to issue new debt to fund Sam's Corp's investment in new warehouses. You strongly believe that inflation will be much higher in the future and that interest rates will continue to go up from where they are today. Based on your view on where interest rates will go in the future, which type of bond would make the most sense for you to issue and sell to investors today in order to keep your cost of financing as inexpensive as possible? A basic ("plain vanilla"), fixed-rate coupon paying bond (ie the basic bond that we learned how to price and focused on the most within in the lecture) A variable rate bond, with payments linked to changes in the US Federal Punds rate A variable rate bond, with payments linked to changes in the average US mortgage rate for a 750 FICO borrower A callable bond

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