Problemyou are considering a 20-year 1000 par value bond, Ask an Expert

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Problem:

You are considering a 20-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 10.59%, how much should you be willing to pay for the bond? Explain all workings out and describe comprehensively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146878

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