How much to pay to earn a return on investment


Dr. Schultz is considering purchasing a bond having a face value of $2,500 and a bond rate of 10% payable semiannually. The bond has a remaining life of 8 years. How much should she pay for the bond in order to earn a return on investment of 14% compounded semiannually? Assume the bond will be redeemed for face value.

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Microeconomics: How much to pay to earn a return on investment
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