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You are currently considering the investment possibilities for several Corporate Bonds that are currently trading on Euronext Bond Name Time to Redemption (Years) ATS

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You are currently considering the investment possibilities for several Corporate Bonds that are currently trading on Euronext Bond Name Time to Redemption (Years) ATS Ltd Sarpec Metro GAD No. 7 3 5 Par/ Face Value of one Bond 4 65 (S) 35 (Q) 76 (S) "You have different required returns depending on the period of the bond. Coupon Payment 1,000 1,500 850 Q- Quarterly S=Semi-Annual Market Value one Bond 1,060 1,480 1,310 Required: a. Calculate the coupon rate for each bond (6 marks) b. Should you invest in this bond? (Give a reason for your answer) (14 marks) (Total 20 marks) Required Annual Rate of Return 9% 11% 8% D

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