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November 21, 2014

Homework Help: Finance

Posted by Kris on Tuesday, January 26, 2010 at 11:50am.

Considering investing in either of two corporate bonds - One will give you with an annual 8% interest payment, while
the other will provide you with 6%. Assume that the market rate in
effect on the day you purchase either of the bonds is 7%. Explain how
you will earn 7% on your investment, regardless of which bond you
purchase.

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