suppose that you believe that interest rates are going to fall in the future and you...

suppose that you believe that interest rates are going to fall in the future and you must choose between two bond investment, options a) and b) which of the two bond investment options would you select and why?

A) Buy 10 bonds with 6% coupon rate, thirty-years to maturity, $100 face value, and pay semi annual coupons

B) buy 1 bond with a 4% coupon rate, thirty-years to maturity, $1,000 face value, and pay semi annual coupons

Expert Solution

jeff jeffy answered 1 year ago

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