Your friend promises you a perpetuity of $1 every year, which starts in year 1. However, your friend is an absent-minded guy, paying you $2 at year 15 but no payment at year 5. Except for these two years, in other years, the payment is always $1. Which of the following statements is true? Select one: a. your friend is better off for his being absent-minded b. you are better off for his being absent-minded c. there is no difference for his being absent-minded d. no enough information to make decision e, none of the above Clear my choice Bond A has a coupon rate of 9%, with a three-year maturity and a face value of $1,000. If the discount rate now or future is 9%, you want to buy bond A at year 1 and hold it until its maturity, what is the total expected return for your investment? Select one: a. 10.00% b. 19.00% c. 18.00% d. 20.00% e, none of the above Clear my choice