Which of the following bonds would you prefer to be buying? A) a $10,000 face-value security with a 5 percent coupon selling for $10,000 B) a $10,000 face-value security with a 10 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security with a 10 percent coupon selling for $9,000 5

Question

Myah Fry

24 January, 01:20

+1

Answers (1)

Know the Answer?

Miracle Friedman · Answer 1

D

Explanation:

You have to calculate each bond Yield and keep the highest:

A) 5%

B) 10%

C) 9%

D) 11.11%