Question: CASE 1: (Bond Valuation and Selection You are working as a Fund Manager in an investment bank. You have been allocated A$1 million to

CASE 1: (Bond Valuation and Selection You are working as a Fund

CASE 1: (Bond Valuation and Selection You are working as a Fund Manager in an investment bank. You have been allocated A$1 million to invest in corporate bonds. You have researched the bond market and shortlisted the following three bonds: BOND Alpha Beta Theta COUPON RATE 1% 5% 9% MATURITY 9 years 5 years 10 years Your investment bank requires a minimum rate of return of 6% from any bond investment.

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