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Assume that you are considering the purchase of a 25 -year, noncallable bond with an annual coupon rate of 7.7%. The bond has a face
Assume that you are considering the purchase of a 25 -year, noncallable bond with an annual coupon rate of 7.7%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 9.2% nominal yield to maturity on this investment, what is the price you should be willing to pay for the bond? (A) $930.47 (B) $912.31 (C) $883.38 (D) $854.16 (E) $835.62
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