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4 . You are interested in buying a $ 1 , 0 0 0 par value bond with 2 0 years to maturity and a

4. You are interested in buying a $1,000 par value bond with 20 years to maturity and a 8% coupon rate that is paid semiannually. How much should you be willing to pay for the bond if the required rate of return (discount rate) is 10%?
5. If a semiannual bond with a face value of $1,000 has an 8% annual coupon rate and a 10-year maturity. The current price of the bond is approximate $933.55. Whats the annual yield-to-maturity on this bond?
6. You want to buy a new car. You can make an initial payment of $3,500 and can afford monthly payments of at most $450. If the APR on auto loans is 4.8% and you finance the purchase over 48 months, what is the maximum price you can pay for the car?

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