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3-3 You are considering buying a bond with a face value of $5,000 and a bond coupon rate of 6% paid annually. What is the

3-3

You are considering buying a bond with a face value of $5,000 and a bond coupon rate of 6% paid annually. What is the maximum price you will pay for the bond if you want an annual yield on your investment of 5%? Your first dividend payment will be in one year (end of year one), and you will hold the bond to maturity at the end of year eight.

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