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You are considering the purchase of a 20-year, non callable bond with a coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semi annual interest payments. If you require an 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

1. $699.07

2. $811.92

3. $891.95

4. $774.31

5. $916.50

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91544475

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