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Your friend Barbara has a bond that she would like to sell to you. The bond matures in 10 years, has a face value of

Your friend Barbara has a bond that she would like to sell to you. The bond matures in 10 years, has a face value of $1,000 and a coupon interest rate of 6% (paid annually). If you know that the yield to maturity on similar bonds is 8%, what is the maximum price you would be willing to pay for the bond? a. $865.80 b. $940 c. $1000 d. $1,147.20 PLEASE USE EXCEL AND SHOW CALCULATIONS

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