Maximum price you should be willing to pay for bond

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Reference no: EM132007422

Assume that you are considering the purchase of a 10-year, noncallable bond with an annual coupon rate of 5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 6% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Provide the correct excel function along with inputs for credit.

Reference no: EM132007422

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