Question: Ms . Jones wants to make 8 % nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase a 6 %

Ms. Jones wants to make 8% nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase a 6%,$10,000 bond that will mature in 19 years and pays quarterly interest. This means that she will receive quarterly interest payments on the face value of the bond ($10,000) at 6% nominal interest. After 19 years she will receive the face value of the bond. How much should she be willing to pay for the bond today?
  

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