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QUESTION
You wish to expand your bond portfolio and have the following information regarding a possible bond investment: $1,000 Maturity: 4 years Coupon: 9%...
- You wish to expand your bond portfolio and have the following information regarding a possible bond investment:
Par: $1,000
Maturity: 4 years
Coupon: 9% per annum Yield to Maturity: 10% p.a.
If the current market value of the bond is $982.10 would you buy the bond? Why or why not?
