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An investor is pondering several investment options. One is a 7 year bond with an annual coupon rate of 10% and three years remaining to maturity. Similarility risky bonds are available with an average rate of 12%. bank CDs are offering 5% and mutual funds investing in high risk stocks are offering 20%. Assume that the investor wants to buy a 7 year bond; what is the maximum he should pay for that bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91780205

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