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Assume that you are considering the purchase of a 2 0 - year, noncallable bond with an annual coupon rate of 9 . 5 %

Assume that you are considering the purchase of a

20 -

year, noncallable bond with an annual coupon rate of

9.5 % .

The bond has a face value of $

1, 000,

and it makes semiannual interest payments. If you require an

12.2 %

nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the

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