What is the maximum price you should be willing to pay

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Assume that you are considering the purchase of a 20 year, noncallable bond with an annual coupon rate of 9.5%. the bond has a face value of 1,000 and it makes semiannual interest payments. If you acquire an 8.4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM132634780

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