A person buys a 1000 face value bond 2 years after its

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A person buys a $1,000 face value bond 2 years after its issue. He intends to keep it until its maturity date, which is 18 years from now. This bond pays 6% annually. What price can he pay now for the bond so that his investment earns 8%? The investor gets the face value back at the maturity.

Reference no: EM13379017

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