Maximum price that you should be willing to pay

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Assume that you wish to purchase a 16-year bond that has a maturity value of $1,000 and a coupon interest rate of 11%, paid semiannually. If you require a 11.84% rate of return on this investment (YTM), what is the maximum price that you should be willing to pay for this bond? That is, solve for PV.

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM131383945

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