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Peter owns a puttable $4,000 bond with a 3% coupon. The bond has four years left to maturity. If he puts the bond early, he must pay a $50 fee. Peter decides to hold on to the bond until it reaches maturity. How much more money could he earn if he puts the bond and buys a $5,000 zero coupon bond with his principal? Select the best answer from the choices provided. A.$470 B.$500 C.$480 D.$520 Could someone explain how to solve this? I have no clue what to do.
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What happens when he PUTS the Bond?
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