A $10,000, 10-year corporate bond is offered at a premium for $11,250. The bond rate is 4% per year compounded quarterly

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answerhappygod
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A $10,000, 10-year corporate bond is offered at a premium for $11,250. The bond rate is 4% per year compounded quarterly

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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 Alexwishes to earn 3% per year compounded quarterly on the bondinvestment, should he purchase the bond assuming he keeps the bondtill it matures and then redeems it at face value?Explain. Show all work.
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