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6) (18 points) A $10,000, 10-year corporate bond is offered at a premium for $11,250. The bond rate is 4% per year compo
Posted: Sun Jul 03, 2022 6:55 am
by answerhappygod
- 6 18 Points A 10 000 10 Year Corporate Bond Is Offered At A Premium For 11 250 The Bond Rate Is 4 Per Year Compo 1 (12.6 KiB) Viewed 14 times
6) (18 points) A $10,000, 10-year corporate bond is offered at a premium for $11,250. The bond rate is 4% per year compounded quarterly. If Alex wishes to earn 3% per year compounded quarterly on the bond investment, should he purchase the bond assuming he keeps the bond till it matures and then redeems it at face value? Explain. Show all work.