What is maximum price that you are willing to pay for bond

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Reference no: EM131449368

Let’s assume that your required rate of return is 4%. And you intend to hold this bond until the maturity if you buy it. The face value of this bond is $100. You plan to purchase this bond right after the next coupon payment (on August 1, 2017) without any accrued interest. What is the maximum price that you are willing to pay for this bond?

Reference no: EM131449368

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