Question
Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes interest payments of $40 each year.If you
Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes interest payments of $40 each year.If you require a 10 percent yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
