Question: What is the maximum you would pay for bond with a face value of $1,000, maturity of 5 years and a coupon rate of 8%

  1. What is the maximum you would pay for bond with a face value of $1,000, maturity of 5 years and a coupon rate of 8% if the required rate of return is 7%? Assume that the coupons are paid every six months. (6)

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