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3. A 12-year bond has a face value of $1,000 and pays 8% interest annually. If the going (i.e., market) rate on bonds of similar

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3. A 12-year bond has a face value of $1,000 and pays 8% interest annually. If the going (i.e., market) rate on bonds of similar quality is 11%, what is the most that you would pay for the bond? 4. Redo Problem 3 assuming that the bond pays 8% interest semi-annually

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