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What maximum price would you pay for a standard 12% level-coupon bond (with semi-annual payments and a face value of $1,000 ) that has 6
What maximum price would you pay for a standard 12% level-coupon bond (with semi-annual payments and a face value of $1,000 ) that has 6 years to maturity if the prevailing discount rate (your cost of capital) is an effective 8% per annum? (Hint: Look at your class notes, textbook problem Q3.35)
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