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    Pick the Investment Bond based on Face Value, Annual Coupon Rate, Maturity and Price

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    Which of the following 3 bonds should I invest in assuming a 7% interst rate?

    Bond Face Value Annual Coupon rate Maturity Price

    A $1000 4% 1 year $990

    B $1000 7.5% 17 years $990

    C $1000 8.5% 25 years $990

    Please show how you manually calculated this.

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    Solution Summary

    An Investment Bond is picked based on Face Value, Annual Coupon Rate, Maturity and Price. The solution is detailed and well presented. The response received a rating of "5" from the student who originally posted the question.