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Zach is trying to figure out the price he should pay for a Corporate Bond with a $10,000 face value. His minimum acceptable return is 10% per year, compounded semi-annually. Sally, the company representative wants him to pay $8,500 for the bond and in return he will get a 6% coupon rate semiannually and the face value of the bond after 8 years. Will the investment meet Zach’s minimum acceptable return of 10% or is Sally trying to pull a fast one? SHOW WORK

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Business Economics, Economics

Category:- Business Economics
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