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if you could show work please Your broker offers to sell you a bond for $900 with a AA-rating. The bond has a 6% coupon

image text in transcribedif you could show work please

Your broker offers to sell you a bond for $900 with a AA-rating. The bond has a 6% coupon rate (simple annual rate) with semiannual payments and matures in 5 years. You will receive $1,000 at maturity. Given that the market interest rate for comparable bonds is currently 8 percent annually, should you buy the bond? (Hint find the price of the bond today. Then compare to the sales price the broker wants you to pay. Is the bond price you found cheap or expensive to the broker's offer price?) Yes, value > offer price No, value > offer price No, value = offer price

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