16-point question 2. Evaluate which of the following options…
16-point question 2. Evaluate which of the following options would be your best investment based solely on the yield to maturity criterion. Option #1: Purchase a $50,000 discount bond selling for $37,777 and maturing in 6 years. Option #2: Purchase a $75,000 coupon bond with a 6.65% coupon rate selling for $72,800 and also maturing in 6 years. Option #3: Lend a friend $30,000 with promised repayments of $6,050.00 in 2 years, $14,641.00 in 4 years, and $26,573.42 in 6 years. Note: The payments represent 1/6, 1/3, & 1/2 of the original loan amount.