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You notice RW, Inc has the following bonds outstanding. All have a maturity of three years, the same credit rating, and are pari passu (meaning

You notice RW, Inc has the following bonds outstanding. All have a maturity of three years, the same credit rating, and are pari passu (meaning equal in priority).

Bond

Coupon

Special provisions

A

4.00%

Option-free bond

B

4.00%

Callable at par at the end of years 1 and 2

C

4.00%

Putable at par at the end of years 1 and 2

D

1-year LIBOR

Floating rate bond

All else being equal, which bond (A, B, or C) do you expect will be priced the highest?

Group of answer choices

Bond A

Bond B

Bond C

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