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Problem:

Assume that you are considering the purchase of an 11-year, noncallable bond with an annual coupon rate of 8.60%. The bond has a face value of $1000, and it makes semiannual interest payments. If you require an 11.70% yield to maturity on this investment,

Required:

What is the maximum price you should be willing to pay for the bond?

Explain in detail and show all work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147210

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