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Posted on May 18, 2024

You are considering buying a 1 0 - year bond with a face value of $ 5 , 0 0 0 . It pays a

You are considering buying a

10 -

year bond with a face value of $

5, 000 .

It pays a rate of

3 %

of the face value semiannually. How much would you be willing to pay for the bond now if you want a nominal annual yield of

10 %,

compounded semiannually, and you plan to keep it until maturity?

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