A 3000 face-value bond matures in three years and pays 8


Question: A $3,000 face-value bond matures in three years and pays 8% per year payable semiannually (4% every six months). An investor wants a 10% return per year compounded semiannually.

a. How much should the investor pay for the bond?

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Finance Basics: A 3000 face-value bond matures in three years and pays 8
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