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James Parker wants to invest his money to earn at least 1 4 % . A friend who is interested in investments has suggested him

James Parker wants to invest his money to earn at least 14%. A friend who is interested in investments has suggested him to buy a bond issued by the Capital Group Company that will mature in seven years. It has a face value of $1,000, pays a semi-annual coupon of $55, and currently sells for $920. Should he buy this bond? Why or why not?

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