Determine whether should he buy the bond


Assignment task: Jerry has an opportunity to buy a bond with a face value cf$10'000 and a coupon rate of 13 percent payable semiannually.

a. If the bond matures in five years and Jerry can currently buys one for $3.500, what is his E for this investment?

b. If his MARR for this type of investment is 20 percent' should he buy the bond?

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Microeconomics: Determine whether should he buy the bond
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