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

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Reference no: EM131612235

Assume that you are considering the purchase of a 10-year, noncallable bond with an annual coupon rate of 6%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM131612235

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