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What is the maximum price you should be willing to pay

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Question - Bond value - semiannual payment

Assume that you wish to purchase a 25-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $45. If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM131785120

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