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You have just been told by your friend that he wishes to buy a strip bond (no coupons) for $250,000 and it will pay him
You have just been told by your friend that he wishes to buy a strip bond (no coupons) for $250,000 and it will pay him 1,700,000 in a lump sum in 14 years. If you want to make a 15% return on this investment, is it for you or maybe you should choose something else. What do you think? Explain your position and how you arrived at it
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