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OpenStudy (anonymous):
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?
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