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A Government public utility bond is due in 25 years. promises to pay 12% interest, compounded quarterly. assume that this bond in to be value
A Government public utility bond is due in 25 years. promises to pay 12% interest, compounded quarterly. assume that this bond in to be value so that the buyer will realize a nominal 16% interest return compounded quarterly. it is selling for $25000, should you buy the bond and why?
A) P= $25,000
B) P= $7,500
C) P= $19,245
D) P= $32,500
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