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Problem 3 Bond Valuation (10 points) Assume that you are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The

Problem 3 Bond Valuation (10 points) Assume that you are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 10.7% nominal yield to maturity on this investment, what is the price you should pay for the bond? (10 points)

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