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10.Assume that a 15-year, $1,000 face value bond pays interest of$37.50 every 3 months. If you require a nominal annual rate of return of 12
10.Assume that a 15-year, $1,000 face value bond pays interest of$37.50 every 3 months. If you require a nominal annual rate of return of 12 percent, with quarterly compounding, how much should you be willing to pay for this bond? (Hint: The PVIFA and PVIF for 3 percent, 60 periods are 27.6748 and 0.1697, respectively.)
a.$821.92
b.$1,207.57
c.$986.43
d.$1,120.71
e.$1,358.24
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