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What price should be willing to purchase the bond

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Reference no: EM133000263

Problem 1: Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 6 percent per year, payable at 3 percent semiannually. The bond has a remaining life of 5 years. If Lucy wants to earn at least 8 percent per year compounded semiannually, at what price should she be willing to purchase the bond?

Reference no: EM133000263

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