How much should you be willing to pay for the bond

Reference no: EM13304925

You are considering a 10 year, $1,000 par value bond. its coupon rate is 9%, ad interest is paid semi-annually. If you require an "effective" annual interest rate (not a nominal rate) of 8.16%, how much should you be willing to pay for the bond?

Reference no: EM13304925

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