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1 0 - year 6 % coupon $ 1 0 , 0 0 0 par value bond with a semi - annual coupon is offered

10 -

year

6 %

coupon $

10, 000

par value bond with a semi

-

annual coupon is offered for sale at an asking price of $

7, 000 .

If an investor seeks a yield to maturity of at least

12 % .

Would this investor buy this bond? Why or why not?

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