Question: the maximum i will be paying for the bond Question 7 (10 marks) A bond matures in seven years from today. It pays an annual

the maximum i will be paying for the bond Question 7

the maximum i will be paying for the bond

Question 7 (10 marks) A bond matures in seven years from today. It pays an annual return of 50 and at maturity it pays back its initial cost of 1,000. If your annual return expectation from such an investment is 374% how much at a maximum are you prepared to pay now to buy the bond? a

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