Business
Business, 23.07.2019 16:10, genyjoannerubiera

An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold the bond only for 10 years, at which time she will sell it in the marketplace. she requires a 12 percent annual return but believes the market will require only an 8 percent return when she sells the bond 10 years from now. assuming she is a rational investor, how much should she be willing to pay for the bond today? (round the answer to two decimal places.) a. $737.50 b. $927.68 c. $856.91 d. $1,126.85 e. $1,081.43

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An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months....

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