Question
Considering investing in either of two corporate bonds - One will give you with an annual 8% interest payment, while
the other will provide you with 6%. Assume that the market rate in
effect on the day you purchase either of the bonds is 7%. Explain how
you will earn 7% on your investment, regardless of which bond you
purchase.
the other will provide you with 6%. Assume that the market rate in
effect on the day you purchase either of the bonds is 7%. Explain how
you will earn 7% on your investment, regardless of which bond you
purchase.