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You are considering purchasing a bond for which pays you a monthly coupon each month for 12 months. At the end of the year, the
You are considering purchasing a bond for which pays you a monthly coupon each month for 12 months. At the end of the year, the bond also pays you a principal payment. Your investment manager tells you that at the current price, the IRR for this investment will be 10%, which you are guaranteed to earn as long as you hold this bond to maturity.
Is this statement true, false, or uncertain? Explain
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