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You last week check the Report of Unclaimed Funds as reported by the State of Indiana. You find your name as owner listed next to

You last week check the Report of Unclaimed Funds as reported by the State of Indiana. You find your name as owner listed next to a $10,000 Railroad Trust Bond that matures in 20 years. These bonds were issued with a coupon rate of 18%, interest paid annually. Your required rate of return equals 10%. You receive an offer from an investor to buy these bonds from you for the price of $15,000. What is your recommendation?

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Sell the bonds because the $15,000 offer exceeds the computer value of $6,839.19.

Hold the bond because your calculated value of $16,355.57 exceeds the market price of $15,000.

Hold the bonds because your value of $16,810.85 exceeds the market price of $15,000.

Sell the bonds because their value of $17,575 exceeds the current $15,000 offer.

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