What is maximum price you should be willing to pay for bond
Course:- Financial Management
Reference No.:- EM13942910

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You are considering the purchase of a 20-year, noncallable bond with a coupon rate of 8.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?






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