Determine the maximum price for the bond, Finance Basics

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Determine the maximum price for the bond

Question: Suppose that you are considering the purchase of a fifteen year bond with an annual coupon rate of 9.5%. The bond has face value of 1,000 dollar and makes semiannual interest payments. If you require an 11.0 percent nominal yield to maturity on this investment, determine the maximum price you should be willing to pay for the bond?

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Finance Basics: Determine the maximum price for the bond

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