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QUESITON 13 You are planning to invest in a 10-year bond of Twitter that pays a 12 percent coupon. The current market rate for similar
QUESITON 13
You are planning to invest in a 10-year bond of Twitter that pays a 12 percent coupon. The current market rate for similar bonds is 9 percent. Assume semi-annual coupon payments. Would you buy it if it is currently trading for 1.096 and why? a. Yes, because the bond is worth 1, 195.12 b. No, been use the bond is worth 1, 195.12 c. Yes. because it is selling at a premium d. No. because the bond is worth $1, 033, 12 c. Yes. because the bond is worth $1, 033.12Step by Step Solution
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