Question: Instructions Do not do interim rounding, round final values to 2 places unless otherwise stated, and state interest rates as percentages to two places (8.50,

Instructions

Do not do interim rounding, round final values to 2 places unless otherwise stated, and state interest rates as percentages to two places (8.50, not .0850). Do not label answers with $ or % or word labels.

Jens Martel has a choice of two 5-year bonds and is seeking the highest return. Given the following information about each bond, which one should he choose?

  1. Bond A's coupon is 4.15% and is priced at 101.25 per 100
  2. Bond B's coupon is 3.45% and is priced at 97.90 per 100
A.

Both bonds have the same return.

B.

Bond A.

C.

Bond B.

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