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    If your nominal annual required rate of return is 10 percent with semiannual compounding, showing the computations how much should you be willing to pay for this bond?

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    You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months. If your nominal annual required rate of return is 10 percent with semiannual compounding, showing the computations how much should you be willing to pay for this bond?

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    https://brainmass.com/business/bond-valuation/59488

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    Value of bond = PV of interest payment + PV of face value on redemption
    =Coupon Interest ...

    Solution Summary

    You will find the answer to this puzzling question inside...

    $2.19

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