Which of the following bonds would you prefer to be buying? A) a $10,000 face-value security with a 5 percent coupon selling for $10,000 B) a $10,000 face-value security with a 10 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security with a 10 percent coupon selling for $9,000 5

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26 February, 08:38

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Alvaro Santiago · Answer 1

D

Explanation:

You have to calculate each bond Yield and keep the highest:

A) 5%

B) 10%

C) 9%

D) 11.11%