What is maximum price you should be willing to pay for bond

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Reference no: EM131545951

Assume that you wish to purchase a 20 year bond that has a maturity value of 1,000 and makes semiannual interest payments of $40. If you require a 10 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM131545951

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