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Please show all working. 2. Barasa Trading Company has a 20-year, $1,000 par value bonds that pay 6 percent interest annually. The market price of

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2. Barasa Trading Company has a 20-year, $1,000 par value bonds that pay 6 percent interest annually. The market price of the bonds is $1,200, and your required rate of return is 8 percent. Required: a. Compute the bond's expected rate of return (5 points). b. Determine the value of the bond to you given your required rate of return (5 points). C. Should you purchase the bond? (2 points) d. Without doing any computations, if interest was paid semi-annually, would you buy the bond or not? Explain why or why not (2 points)

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