Question: Assume that the U.S. inflation rate will increase substantially over the next year. Which of the following investment would you like to choose? Explain. (1)

Assume that the U.S. inflation rate will increase substantially over the next year. Which of the following investment would you like to choose? Explain.

(1) 10-year 7% coupon bonds issued by the GE Company;

(2) 15-year 6% coupon bonds issued by the GE Company.

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