Suppose that you want to inves

Suppose that you want to invest for three years to earn the highest possible return. You have three options:

– Roll over three one-year bonds, which pay interest rates of 8% in the first year, 11% in the second year, and 7% in the third year;

– buy a two-year bond with a 10% interest rate and then roll over the amount received when that bond matures into a one-year bond with an interest rate of 7%; or

– buy a three-year bond with an interest rate of 8.5%. Assuming annual compounding, no coupon payments, and no cost of buying or selling bonds, which option should you choose?

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized