a.)Given the opportunity to invest in one of the three bonds listed below, which would
you...

Question

a.)Given the opportunity to invest in one of the three bonds listed below, which would
 you purchase? Assume an interest rate of 7%.
 Bond

Bond FaceValue Annual Coupon Rate Maturity Market Price

Russel Inc $1000 4% 1 yr $990

Thomas Inc $ XXXXXXXXXX% 17 yr $990

Stephanie Inc $ XXXXXXXXXX% 25 yr $990

B.) Master card and other credit card issuers must by law print the annual percentage rate (APR) on their Monthly Statements. If the APR is stated to be 18.00%
 with interest paid monthly, what is the cards EFF%?

Robert · Accepted Answer

a.)Given the opportunity to invest in one of the three bonds listed below, which would 
you purchase? Assume an interest rate of 7%. 
Bond
Bond FaceValue Annual Coupon Rate Maturity Market Price 
Russel Inc $1000 4% 1 yr $990 
Thomas Inc $1000 7.5% 17 yr $990 
Stephanie Inc $1000 8.

a.)Given the opportunity to invest in one of the three bonds listed below, which would you purchase? Assume an interest rate of 7%. Bond Bond FaceValue Annual Coupon Rate Maturity Market Price Russel...

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