What is the maximum price investors

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Suppose a bond has a coupon interest rate of 6% (or 0.06) and has 7 years remaining until maturity, and makes annual interest payments. As is typically the case, the bond has a future (or maturity) value of $1,000 (FV = $1,000). If investors require an 11.5% nominal yield to maturity on this investment (therefore r(D) = 11.5% or 0.115), what is the maximum price investors should be willing to pay for the bond?

Value of Bond (PV) =

Reference no: EM132799644

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