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Question 4) (10 points) This morning before coming to Dalhousic for your final exam you were reading your favorite newspaper. In the financial section you

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Question 4) (10 points) This morning before coming to Dalhousic for your final exam you were reading your favorite newspaper. In the financial section you have found the following information on bonds issued by ABC Inc. Unfortunately, as you were just a little bit stressed for your exam you mistakenly dropped some coffee exactly on the number indicating the price of the bonds! (a) Are the bonds selling at a discount, at par or at a premium? Justify your answer with words not calculations. ( 2 points) (b) If the bond just paid a coupon (Dec. 12, 2022), what would the current price be? (assume that the bond makes semi-annual coupon payments) ( 4 points) (c) Another bond on the market issued by MNP Inc. has 6% coupons with 7 years left to maturity. The bonds make semi-annual payments and are selling for $849.43. What is the yield to maturity of this bond? ( 4 points) b) The mutual fund has an opportunity to buy $20M of another stock with a beta of 1.2 and an expected return of 9%. Should it in invest in this stock? Why or why not? (4 points)

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