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An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and pays 6% interest per year in two

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An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and pays 6% interest per year in two semiannual payments. Thus the purchaser of the bond would receive $30 every 6 months and in addition he would receive $1000 at the end of 20 years, along with the last $30 interest payment. If the investor thought he should receive 8% interest, compounded semiannually, how much would he be willing to pay for the bond? Three mutually exclusive alternatives are being considered. Each alternative ha a 20-year useful life with no salvage value. The minimum attractive rate of return is 7%. Which alternative should be selected

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