A risk free private bond with a face value of 10,000 will mature in 1 year. If
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Question:
A risk free private bond with a face value of 10,000 will mature in 1 year. If the market interest rate is 25 % then
a) the maximum price you are willing to pay for it is 5000.
b) you should buy if the price is higher than 9000.
c) you should buy if the price is lower than 5000.
d) All of the answers are correct.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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