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Saint and Lewis Investment Management (SLIM) Inc. is considering purchasing bonds to be issued by Caterpilar Inc. The bonds have a face value of $10,000 and a coupon rate of 6%. The bonds will mature 10 years after they are issued. The issue price is expected to be $8,750. What is the IRR for the bonds? If SLIM requires at least an 8% return on its investments, should they invest in the bonds?

Reference no: EM13804985

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