Question: Your cousin Lila has a $4000 municipal bond with 3 years remaining before it matures. It has a stated interest rate of 8%. She needs cash to pay off some medical expenses so she offers to sell you the bond for $3600. If your best other investment option is a 7% account, should you buy the bond? If you buy the bond described for $3,600, what will be the rate of return on the bond?