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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
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 11.9% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Show Solutions and do not solve in excel.
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