Your brother asks you to invest in one of his hair brained schemes. The scheme involves you investing $12,000 today and earning $4,000 back every year over five years. Should you do the deal? Assume an hurdle rate of 32%

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Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…

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Q: interest rate

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