You'd like to buy a 20-year, noncallable bond with an annual coupon rate of 8.4% paid semi-annually.
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Question:
You'd like to buy a 20-year, noncallable bond with an annual coupon rate of 8.4% paid semi-annually. The bond has a par value of $1,000. If you require an 9.20% nominal yield to maturity on this investment, what should you be willing to pay for the bond?
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