You wish to purchase a 20-year 1000 face value bond that


You wish to purchase a 20-year, $1,000 face value 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?

a. $619

b. $674

c. $761

d. $828

e. $902

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Financial Management: You wish to purchase a 20-year 1000 face value bond that
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