Question: $ 1 , 0 0 0 and pays a dividend of 8 % per year, compounded semi - annually. Bill bought the bond three years

1, 000

and pays a dividend of

8 %

per year, compounded semi

-

annually. Bill bought the bond three years ago at face value and there are seven years remaining until the bond matures. Bill wishes to sell it now for a price that will result in Bill earning an annual yield of

10 %

compounded semi

-

annually. What price does Bill need to sell the bond for to earn his desired return?

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