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Assume that you are considering the purchase of a 30-year, noncallable bond with a coupon rate of 4%. The bond has a face value of
Assume that you are considering the purchase of a 30-year, noncallable bond with a coupon rate of 4%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require a 5% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
$895.35 | ||
$845.46 | ||
$432.12 | ||
$1,463.63 | ||
$846.28 |
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