PLEASE HELP!! Which bond below would you invest in and why?

I am utterly confused at this question and have no idea how to choose :/ PLEASE HELP!!!

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1 Answer

  • Bryce
    Lv 7
    1 month ago

    The yields are so low on those bonds, I would not invest in any of them.  In the US, the inflation rate is about 2.3%.  Over five years, the money used to buy a bond yielding 0.78% would lose 7.4% of its purchasing power.  The other bonds would be even worse.  The money used to buy a 15 year bond would lose 15.3% of its purchasing power.  Don't invest in those bonds!

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