How much should you we pay if you want to buy

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Question

You are considering purchasing a bond that has a coupon rate of 8%, paid annually. The face value of the bond is $1,000 and has seven years to maturity. The yield to maturity is 10%.

a. How much should you we pay if you want to buy this bond today?

b. How much should you we pay if you want to buy this bond today? If the bond has ten years to maturity?

Reference no: EM131824270

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