Maximum price that you should be willing to pay for bond

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Reference no: EM132017248

Assume that you wish to purchase a 13-year bond that has a maturity value of $1,000 and a coupon interest rate of 4%, paid semiannually. If you require a 8.91% 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.

Reference no: EM132017248

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