Determine which bond you purchase

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Reference no: EM1363633

Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 7%.

Bond Face Value Annual Coupon Rate Maturity Price
A $1000 4% 1 year $990
B $1000 7.5% 17 years $990
C $1000 8.5% 25 years $990

Reference no: EM1363633

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