What would you be willing to pay at most for that bond

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Reference no: EM131087750

If the going market rate of interest is 8% in financial markets and you are offered to buy a corporate bond that will pay you $2,000 in two years, but no interest is paid between now and then (2 years), what would you be willing to pay at most for that bond? Please show how you got you answer.

Reference no: EM131087750

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