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QUESTION

Choose between A and B, or if they are incomparable investment a has a future value of $600. Investment B has a future value of $500.

Choose between A and B, or if they are incomparable

  1. investment a has a future value of $600. Investment B has a future value of $500. BOth have the same present value All elase equal, which one has the higher interest rate?
  2. Bond A is a BBB bond, Bond B is a AAA bond. All else equal, which one will have a higher yield to maturity?
  3. Bond A is a par bond and bond B is a discount bond. All else equal, which bond has the higher coupon rate?
  4. Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the higher yield to maturity?
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