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Emma is considering purchasing bonds with a par value of $ 20 000 . The bonds have an annual coupon rate of 7 percent and

Emma is considering purchasing bonds with a par value of $ 20 000. The bonds have an annual coupon rate of 7 percent and six years to maturity. The bonds are priced at $ 18 408.

If Emma requires a 9 percentreturn, she should buy these bonds if the price exceeds

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