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  3. you are given the following two investment opportu

You are given the following two investment opportunities: Bond A Bond B Annual Coupon Rate...

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Finance

You are given the following two investment opportunities: Bond A Bond B Annual Coupon Rate 9% 12% Coupon Payment Frequency Semiannually Annual Years to maturity 6 years 5 years Price (per 100 of par value) 95 105 Assuming you are a rational investor that always prefer a high yield over a lower yield, which bond would you choose to invest in? Use calculations to justify your choice.

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