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A. Yan decides to purchase a 5 year bond for $1500. The bond has a face value of $1400 with a coupon rate of

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A. Yan decides to purchase a 5 year bond for $1500. The bond has a face value of $1400 with a coupon rate of 8% compounded semiannually. At the current MARR value of 9%, compounded annually, what should he sell the bond at the end of the 5th year so that he breaks even? B. On the 3.5 year from purchasing the bond (or after collecting 7 coupons) Yan became strapped for cash due to a car accident. She decides to sell the bond for $1200 and forfeit remaining coupons. Determine the amount of gain (or loss) because of this decision.

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