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Question 3 You plan to invest in a bond that pays $80 coupon interest every year, with a $1,000 par value. It matures in 20

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Question 3 You plan to invest in a bond that pays $80 coupon interest every year, with a $1,000 par value. It matures in 20 years and the market is selling this bond at $980. Your required rate of return is 13% 15 marks] a. Compute the bond's expected rate of return. b. Determine the intrinsic value of the bond to you. c. Should you invest in this bond? Why? (5 marks) [2 marks]

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