Find what is the maximum you would pay for the bond

Reference no: EM13300025

A 10-year $2000 Bond with a coupon rate of 10% paid semi-annually is available for purchase. What is the maximum you would pay for this bond if your MARR (without inflation) is 6%, and you estimate an inflation rate of 3% annually? (Can assume that MARR is 3% semi-annually and inflation is 1.5% semi-annually).

Reference no: EM13300025

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