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A zero coupon bond with 100 face value is redeemable at par

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Reference no: EM13380559

A ZERO COUPON BOND with $100 face value is redeemable at par in exactly four years. You see from financial times that you can currently buy IT FOR $68.3. Your alternative is to invest in a saving account, which pays no periodic interest and give a return of 10.5%. Would you buy the bond?

Reference no: EM13380559

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