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    Bond Value Semiannual Payments

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    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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    Using financial calculator:

    N = 25 * 2 = 50, I/YR = 7% / 2 = 3.5%, FV ...

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