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What is the maximum price that you should be willing to pay

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Reference no: EM13948234

1. Assume that you wish to purchase a 18-year bond that has a maturity value of $1,000 and a coupon interest rate of 5%, paid semiannually. If you require a 4.42% 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: EM13948234

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