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Your uncle tells you that he checked on-line and has found that he can by a $1,000 face value bond for only $950. He thinks
Your uncle tells you that he checked on-line and has found that he can by a $1,000 face value bond for only $950. He thinks this sounds like a bargain and wants your opinion. What additional information would you need to accurately advise him about this bond? Why is the bond probably selling below par? What are the two sources of return from a bond?
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