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    Bond Valuation

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    You wish to purchase a 20-year, $1,000 face balue bond that makes semiannual interest payments of $40. If you require a 10% nominal yield to maturity, what price should you be willing to pay for the bond?

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    Solution Preview

    You wish to purchase a 20-year, $1,000 face balue bond that makes semiannual interest payments of $40.  If you require a 10% nominal yield to maturity, what price should you be willing to pay for the bond?

    To calculate the price of the bond we need to calculate / read from tables the values of
    PVIF= Present ...

    Solution Summary

    Calculates the price of a bond.

    $2.19

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