What is the maximum price would pay for the bond

Reference no: EM131795080

Question: On October 30, 2010, ABC company will issue a 5% coupon bond with $1000 par value and semiannual coupon payments. The bonds will mature on October 30, 2020. Based on the prices of bonds with similar risk characteristics, you have determined that the bonds should have a yield to maturity of 5.81%. What is the maximum price you would pay for the bond?

Reference no: EM131795080

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