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Question

You are considering a 25-year, $1,000 par value

bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 6.09%, how much should you be willing to pay for the bond? Do not round intermediate calculations. Round your answer to the nearest cent.

Top Answer

So, you must be willing to pay $1,243.63... View the full answer

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