I you need a 10 percent nominal yield to maturity on this

Reference no: EM13459974

Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40. If you require a 10 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

a. $619

b. $674

c. $761

d. $828

e. $902

Reference no: EM13459974

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