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Joseph wants to invest his money to earn at least 16%. A friend who is interested in investments has suggested him to buy a bond
Joseph wants to invest his money to earn at least 16%. A friend who is interested in investments has suggested him to buy a bond issued by ABC Company that will mature in eight years. It has a face value of $1,000, pays a semi-annual coupon of $90, and currently sells for $1,200. Should he buy this bond? Why or why not?
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