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What is the total ror we make for the one versus the other

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Question - We are considering two bonds. One pays 3% and has a maturity of 8 years, while the other pays 4% and has a maturity of 8 years. If we expect rates to fall by 1% from their current level, which is 4%, where should we invest, and what is the total ROR we make for the one versus the other?

Reference no: EM133177416

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