Question: Question 1. Here are the details on 4 bonds. Current market rates are 5.5% for all 4 bonds.. Which bond would you buy and why?
Question 1. Here are the details on 4 bonds. Current market rates are 5.5% for all 4 bonds.. Which bond would you buy and why? (3 marks) Hints: Current price is the Ask; Show your calculations (7 marks)!
Bond A ABC Inc. 6% 10 Year Annual Pay Current Price $1,045.69
Bond B DEF Ltd. 4% 15 Year Quarterly Pay Current Price $ 850.47
Bond C MLM Inc. 5.5% 6 Year Semi-Annual Pay Current Price $ 998.40
Bond D TJB Ltd. 5.5% 10 Year Annual Pay Current Price $1,000.00
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