Solved: Maximum orice you should be willing to pay for the bond, Finance Basics

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Maximum orice you should be willing to pay for the bond

Problem:

Assume that you wish to purchase a 25yr bond that has a maturity value of $1000 and makes semiannual int payments of 45. If you require a 7 percent yield to maturity on this investments, what is the maximum orice you should be willing to pay for the bond?

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Finance Basics: Maximum orice you should be willing to pay for the bond

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