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How much should mary be willing to pay for the bond

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Reference no: EM132973060

Problem 1: Mary wants to purchase a 20-year bond that has a par value of $1,000 and makes semiannual interest payments of $40. If her required yield to maturity is 10%, which of the following is closest to how much should Mary be willing to pay for the bond?

Option 1: $1000
Option 2: $902
Option 3: $925
Option 4: $828

Reference no: EM132973060

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