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What is the maximum price you would be willing to pay

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Question - Assume that you wish to purchase a 20-year bond that has a maturity value of $1000 and makes semi-annual interest payments of $40. If you require a YTM of 10 percent (5% semi-annually) on this investment, what is the maximum price you would be willing to pay for the bond?

Reference no: EM133088180

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