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if the market interest rate is equal to 5%, should you buy for 900 euros a coupon zero risk free bond that promises to pay 1000 euros in one year?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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if the market interest rate is equal to 5%, should you buy for 900 euros a coupon zero risk free bond that promises to pay 1000 euros in one year?

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