question archive You are given information on two bonds
You are given information on two bonds
Subject:FinancePrice:2.89 Bought5
You are given information on two bonds. Bond WIRA is currently callable with a call price of $1080 while Bond HERO has no callable feature. Both bonds have the same number of years to maturity but different coupon rates. The coupon rate for Bonds HERO and WIRA are 5.5% and 6.5% respectively. If interest rate is expected to decline, which of the two bonds would you choose to own? Explain your rationale.
Option 1
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