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pauls uncle offered to sell him a bond for $1300. the bond has 10 years left to maturity and pays a coupon of 12% paid
pauls uncle offered to sell him a bond for $1300. the bond has 10 years left to maturity and pays a coupon of 12% paid semiannually. paul could earn a yield of 8% for similar bonds. should he buy the bond from his uncle?
a. no b/c he would pay $4.88 more than market price
b. no b/c pay 396.36 less than market bond
c. yes b/c pay $28.19 less than price bond
d. no b/c pay 28.19 more than market price
e. yes. $4.88 less than market price bond
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