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 ma

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answerhappygod
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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 ma

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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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