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Assume that you wish to purchase a 30-year bond that has a maturity value of $1,000 and a coupon interest rate of 10%, paid semiannually.

Assume that you wish to purchase a 30-year bond that has a maturity value of $1,000 and a coupon interest rate of 10%, paid semiannually. If you require 8% rate of return on this investment, what is the maximum price that you should be willing to pay for this bond?

a) $1,111 b) $1,450 c) $1,352 d) $1,226

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