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2. Stan Smith has the opportunity to purchase a U.S. Treasury bond for $9,000. The bond matures in eight years and has a face value

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2. Stan Smith has the opportunity to purchase a U.S. Treasury bond for $9,000. The bond matures in eight years and has a face value of $10,000. This means that Stan will receive $10,000 cash when the bond's maturity date is reached. The bond stipulates a fixed nominal simple interest rate of 8% per year payable quarterly. a. Compute Stan's efective rate of return per quarter on this investment opportunity. b. Compute Stan's annual effective rate of return on this investment opportunity C. Stan has set his MARR to be a nominal 8% interest rate per year compounded quarterly. Should Stan Smith purchase the bond for $9,000? Why

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