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Bond par value $1,000 Coupon rate 10% Market interest rate 12% Answer the following: 1. Would you buy that bond if you take $200 discount

Bond par value $1,000 Coupon rate 10% Market interest rate 12%

Answer the following:

1. Would you buy that bond if you take $200 discount from its face value?

2. What if the coupon payment is paid semiannually, will you change your mind?

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