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Problem:

Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment,

Required:

What is the maximum price you should be willing to pay for the bond? Please explain detail and show all work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147528

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