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The face value of the bond is equal to $1000. The coupon rate is 5% and the bond maturity is in three years. The investor’s expected rate of return is 8%. Is it worth buying this bond for $980? Can you show the calculations?
The face value of the bond is equal to $1000. The coupon rate is 5% and the bond maturity is in three years. The investor’s expected rate of return is 8%. Is it worth buying this bond for $980? Can you show the calculations?
