Investor purchase the bond

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Orange district hospital issue a 30 year, 10 percent annual coupon bond (par value 1, 000.00) two years ago, the bond now has 28 years remaining until maturity and sells for 1, 4000.00 The bond has a call provision that allow the hospitalto call the bond in ten yearrs at a call price 1, 100, if an investor call and require and 6.5 rate of return, will the investor purchase the bond, explain why.

Reference no: EM132420994

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