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How much would you pay for the bond

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Reference no: EM133053655

Question - Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on the bond is 12 percent (annual yield). How much would you pay for the bond if the coupon rate is 10 percent and the remaining time to maturity is 25 years?

Reference no: EM133053655

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