Emmett has a choice between two bonds-Bond A and Bond
B. Both bonds have a future value of $10,000. Bond A earns 3 percent interest and Bond B earns 5 percent interest and both bonds have a term to maturity of 3 years. a. Calculate the PV (present value) of the two bonds. b. If Emmett decides to ignore the relative risk of the two bonds, and is only interested in locking up the least amount of money into the bond today, which bond will he choose? c. From this little example, what can you say about the relationship between bond prices and interest rates?
A. 
Definitions:
Internalized Conscience
The part of an individual's psyche that is made up of internalized moral standards, guiding right and wrong conduct.
Socially Responsive
Characteristics of an individual or entity that demonstrates awareness, sensitivity, and adaptability to social contexts and needs.
Observational Learning
Gaining understanding and abilities through the observation and emulation of other individuals.
Observational Learning
The process of acquiring information or behavior patterns by observing and imitating others.
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