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Consider a bond with a par value of $1,000, a coupon rate of 6%, and 10 years until maturity. What is the most you should
Consider a bond with a par value of $1,000, a coupon rate of 6%, and 10 years until maturity. What is the most you should pay for this asset if your required rate of return for assets like this is 5% and the coupon payments are paid annually? How does your answer change if the bond is semi-annual? Does the semi-annual bond sell at a premium or a discount?
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