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I need help with the following question. Please provide any explanation so I know how to do it. You are considering a 10-year, $1,000 par
I need help with the following question. Please provide any explanation so I know how to do it.
You are considering a 10-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below.
If you require an "effective" annual interest rate (not a nominal rate) of 11.93%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.
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