question archive On December 31, 2015, as a gift for being a dedicated customer, your broker offered you to buy either a 3 year 3% coupon US Treasury bond with the $1,000 par value for $1,000 or a 5 year zero-coupon US Treasury bond with the $2,000 par value for $1,750
Subject:FinancePrice: Bought3
On December 31, 2015, as a gift for being a dedicated customer, your broker offered you to buy either a 3 year 3% coupon US Treasury bond with the $1,000 par value for $1,000 or a 5 year zero-coupon US Treasury bond with the $2,000 par value for $1,750.
You can only buy one bond and, as you don't want to carry the price risk, you are going to resell the bond you bought immediately on the open market.
Which of the bonds are you going to buy?