Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 7%
$\begin{array} { | l | l | l | l | }
\hline \text { Bond } & \text { Face Value } & \text { Annual Coupon Rate } & \text { Maturity Price } \
\hline \mathrm { A } & € 1,000 & 4 \% & 1 \text { year } € 990 \
\hline \mathrm { B } & \mathrm { C } 1,000 & 7.5 \% & 17 \text { years } € 990 \
\hline \mathrm { C } & € 1,000 & 8.5 \% & 25 \text { years } € 990 \
\hline
\end{array}$

Question

Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 7%
$\begin{array} { | l | l | l | l | } 
\hline \text { Bond } & \text { Face Value } & \text { Annual Coupon Rate } & \text { Maturity Price } \
\hline \mathrm { A } & € 1,000 & 4 \% & 1 \text { year } € 990 \
\hline \mathrm { B } & \mathrm { C } 1,000 & 7.5 \% & 17 \text { years } € 990 \
\hline \mathrm { C } & € 1,000 & 8.5 \% & 25 \text { years } € 990 \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 7%
$\begin{array} { | l | l | l | l | } 
\hline \text { Bond } & \text { Face Value } & \text { Annual Coupon Rate } & \text { Maturity Price } \
\hline \mathrm { A } & € 1,000 & 4 \% & 1 \text { year } € 990 \
\hline \mathrm { B } & \mathrm { C } 1,000 & 7.5 \% & 17 \text { years } € 990 \
\hline \mathrm { C } & € 1,000 & 8.5 \% & 25 \text { years } € 990 \
\hline
\end{array}$

Given the Opportunity to Invest in One of the Three