Noncallable bond with annual coupon rate

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Reference no: EM131055166

Assume that you are considering the purchase of a 6-year, noncallable bond with an annual coupon rate of 9.05%. The bond has a face value of $1000, and it makes semiannual interest payments. If you require an 12.90% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM131055166

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