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The terms of a particular 1000 par bond are that it will pay 4% interest payable as semi annual coupons until it matures at par,
The terms of a particular 1000 par bond are that it will pay 4% interest payable as semi annual coupons until it matures at par, which may be on or after July 1, 2040, as the issuer may determine. On July 1, 2020, what should an investor offer to pay for this bond in order to assure a yield of at least 5% effective.
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