A 20-year bond has 8 annual coupons a par value of 1000 and


A 20-year bond has 8% annual coupons, a par value of $1000, and a redemption value of $1000. Coupons are invested at a nominal annual rate of 5% convertible semi-annually. X is the highest price that an investor can pay for the bond and obtain an effective annual yield of at least 10%. Calculate X.

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Financial Management: A 20-year bond has 8 annual coupons a par value of 1000 and
Reference No:- TGS01420428

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