Provide a brief explanation of your choice

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Question: We predict that interest rates are about to fall. Which bond would we purchase?

Provide a brief explanation of your choice (no calculation needed). Please directly type your answer in the space below.

Bond A: 5-year, 8% annual coupon bond, selling at par value

Bond B: 10-year, 8% annual coupon bond, selling at 110% of par value

Reference no: EM133377012

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