Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 7%.
B.If funds remain, one may purchase Bond B also since both Bonds B and C are underpriced.
$\begin{array}{lllrl}
\text { Bond } & \text { Face Value } & \text { Annual Coupon Rate } & \text { Maturity}& \text { Price } \
\text { A } & \$ 1,000 & 4 \% & 1 \text { year } & \$ 990 \
\text { B } & \$ 1,000 & 7.5 \% & 17 \text { years } & \$ 990 \
\text { C } & \$ 1,000 & 8.5 \% & 25 \text { years } & \$ 990
\end{array}$

Question

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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%.
B.If funds remain, one may purchase Bond B also since both Bonds B and C are underpriced.
$\begin{array}{lllrl}
\text { Bond } & \text { Face Value } & \text { Annual Coupon Rate } & \text { Maturity}& \text { Price } \
\text { A } & \$ 1,000 & 4 \% & 1 \text { year } & \$ 990 \
\text { B } & \$ 1,000 & 7.5 \% & 17 \text { years } & \$ 990 \
\text { C } & \$ 1,000 & 8.5 \% & 25 \text { years } & \$ 990
\end{array}$

Given the Opportunity to Invest in One of the Three