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

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Assume that you are considering the purchase of a 11-year, no callable bond with an annual coupon rate of 8.60%. The bond has a face value of \$1000, and it makes semi-annual interest payments. If you require an 11.70% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

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