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5. An investor purchased a bond that has a coupon rate of 12% paid quarterly, face value $1000, and maturing in 20 years. The purchasing

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5. An investor purchased a bond that has a coupon rate of 12% paid quarterly, face value $1000, and maturing in 20 years. The purchasing price was $800 and had 15 years to maturity. 1) If your MARR was 1 090, was the purchase a good decision or bad decision? (10 points) 2) The bond was kept for only 5 years and sold for $900 immediately after the 20h interest payment was received. Calculate the nominal and effective rates of return per year on this inv points) estment. (15

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