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Suppose that you buy a bond with face value $1,000 that was originally issued 18 months ago. The maturity date is 4 years from the
Suppose that you buy a bond with face value $1,000 that was originally issued 18 months ago. The maturity date is 4 years from the time it was issued, and the interest rate is 3% simple interest per year. If you pay $880 for the bond and keep it until the maturity date. a. Find the amount of interest that will be paid on the bond at maturity, and the total amount of money you'll get from the issuer at that point. b. Find the profit you'd make on this transaction. c. What percent of your investment is the profit made
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