Question: 9. Problem 7.16 (Bond Valuation) You are considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannualy.

9. Problem 7.16 (Bond Valuation) You are considering a 25-year, $1,000 par

9. Problem 7.16 (Bond Valuation) You are considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannualy. If you require an "effective annual interest rate (not a nominal rate) of 3.2025%, how much should you be willing to pay for the bond? D

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