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What is the maximum price you should be willing to pay

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Question - Assume that you are considering the purchase of a 9-year, noncallable bond with an annual coupon rate of 12%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Reference no: EM133177492

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