Calculate the nominal and effective rates of return per year

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Reference no: EM131354800

An investor purchased a bond that has a coupon rate of 8% paid quarterly, face value $1000, and maturing in 30 years. The purchasing price was $850 and had 20 years to maturity. 1) If your MARR was 10% was the purchase a good decision or bad decision? (10 points) The bond was kept for only and sold for $950 immediately after the 28th interest payment was received. Calculate the nominal and effective rates of return per year on this investment.

Reference no: EM131354800

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