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What is the maximum amount an investor should pay

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What is the maximum amount an investor should pay for a 25-year bond with a P20,000 face value and 8% coupon rate (interest only paid semiannually)? The bond will be kept to maturity. The investor's effective annual interest rate for economic decision is 10%.

A. P20,000   C. P18,345
E. P16,727   D. P19,527

Reference no: EM132178095

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