If you required an annual effective rate of return of 1025
You are considering the purchase of a 10 year, 12% semiannual coupon bond. If you required an annual effective rate of return of 10.25%, how much should you be willing to pay for the bond??
a. $826.31
b.$597.50
c. $1086.15
d. $1124.62
e. $1431.49
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