Question: Let us consider the two following Treasury bonds whose characteristics are the following: Maturity (years) Coupon rate (%) Price Name Bond 1 6 Bond

Let us consider the two following Treasury bonds whose characteristics are the

Let us consider the two following Treasury bonds whose characteristics are the following: Maturity (years) Coupon rate (%) Price Name Bond 1 6 Bond 2 20 5 0 100 31.18 Your investment horizon is 6 years. Which of the two bonds will you select?

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