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4(b) You have an opportunity to buy a bond with a face value of S100,000 and coupon rate of 8%, payable semi-annually. NOTE: Interest per

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4(b) You have an opportunity to buy a bond with a face value of S100,000 and coupon rate of 8%, payable semi-annually. NOTE: Interest per 6-month period is 4% of Face Value (ie. $100,000:0.04 = $4000 per 6-month period). (i) If the bond matures in 6 years and you can currently buy one for $95,000, what is your IRR for this investment? If your MARR for this type of investment is 900, should you buy the bond? (ii)

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