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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 9.5% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? a. $1,140.00 b. $1,010.00 c. $1,000.00 d. $1,220.00 e. $980.00
- A. a
- B. b
- C. c
- D. d
- E. e
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