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The investment should be made now because due to higher market interest rate, it would be available at discounted price with reduction of 2% it is expected that MV will be up. I think that the effect on ABC's financial statements would be that the Capitol Gains and profit in the financial statement would increase. Furthermore, one should hold the bonds until it gives a capital gain.

But what about the future value of the investment, Could that change an investors decision at all? If so how?

Financial Management, Finance

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