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need help solving Besides buying shares in GoGo Limited, you have also decided to buy some bonds issued by a company called Argus Corporation and
need help solving
Besides buying shares in GoGo Limited, you have also decided to buy some bonds issued by a company called Argus Corporation and create your own investment portfolio. Argus borrowed $10,000,000 through a 5-year bond issue exactly one year ago. The face value (and sale price) of each bond when they were issued was $1,000, and the coupon rate on each bond was 6% p.a. Interest on the bond is paid semi-annually. The current market price of each bond is $975.00. 1) a) Calculate the amount of each interest payment on the bond. b) If you bought an Argus bond today for $975.00 and sold it in exactly one year for $980.00, what would be the approximate return on your investmentStep by Step Solution
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