If you invest $10,000 in bonds with a Coupon rate of 8%

timer Asked: Nov 30th, 2015

Question description

If you want to invest $10,000 into 10 year bonds with a coupon rate of 8%, which is paid semi-annually, each bond cost $1400. you must pay a premium, but you believe a $400 premium is too high. what is the maximum price you should pay for each bond and what is the risk of a CD with the risk of a bond and also what would you advise with regard to this type of investment

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