Question: Problem #2 You are about to purchase a 20-year bond, ($1,000 face value) with 8% annual coupons. If the current market rate is 6%, at

Problem #2 You are about to purchase a 20-year bond, ($1,000

Problem #2 You are about to purchase a 20-year bond, ($1,000 face value) with 8% annual coupons. If the current market rate is 6%, at what price should you be willing to buy this bond, if this bond pays interest on a semi-annual basis? (5 Points)

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