Draw cash flow diagram for bond investment

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Reference no: EM131306387

Abari bought a 6% $2500 22-year bond at a discount of 5%. He received a quarterly dividend for 4 years, and then sold it immediately after the 16th dividend for $2100.

(a) Did Abari make the return of 7% per year compounded quarterly that he wanted? why

Hints: draw cash flow diagram for bond investment (single project)

Reference no: EM131306387

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