1. Regarding the short-term trading opportunity: a. What basic trading principle is involved in this situation? b....

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1. Regarding the short-term trading opportunity:

a. What basic trading principle is involved in this situation?

b. If Mary’s expectations are correct, what will the price of this bond be in two years?

c. What is the expected return on this investment?

d. Should this investment be made? Why?

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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