Annual coupon rate-maturity and price

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Which of the following 3 bonds should I invest in assuming a 7% interst rate?

Bond Face Value Annual Coupon rate Maturity Price

A $1000 4% 1 year $990

B $1000 7.5% 17 years $990

C $1000 8.5% 25 years $990

Please show how you manually calculated this.

Reference no: EM13116079

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