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Should the investor purchase the bond and why

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Reference no: EM132964516

Problem 1: Calculate the value of a bond that will mature in 8 years' time and has a $1000 face value. The coupon interest rate is 9%p.a. paid annually and the bond investor's required rate of return is 12%.

Problem 2: If the Market Price of the bond is $930, should the investor purchase the bond? (Give a reason for your answer.)

Reference no: EM132964516

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