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What price would you be willing to pay for the bond described in question 13 lie, $10.000 face value, coupon payment of $500, best alternative
What price would you be willing to pay for the bond described in question 13 lie, $10.000 face value, coupon payment of $500, best alternative asset pays ar-03 return) when the bond will mature in 10 years (i.e., someone else has been holding the bond for 20 years and now wants to sell it to you)? Notice that the value of the bond decreases as time passes, even if r remains r = .03 and if the coupon payment remains $500!!! a. $8237.11 b. $9132.71 $10,352.37 d. $11,705.84 Se None of these
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