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Assume that you are considering the purchase of a 20 -year, noncallable bond with an annual coupon rate of 10.2%. The bond has face value
Assume that you are considering the purchase of a 20 -year, noncallable bond with an annual coupon rate of 10.2%. The bond has face value of $1,000, and it makes semiannual interest payments. If you require an 11.2% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? a. $520,52 b. $966.04 c. $91199 d. $92081 e. 3940.74
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