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What is the maximum price-willing to pay for this bond

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Assume that you wish to purchase a 17-year bond that has a maturity value of $1,000 and a coupon interest rate of 7%, paid semi annually. If you require a 8.74% 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: EM13804403

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