Question: What maximum price would you pay for a standard 8% level-coupon bond (with annual payments and a face value of $1,000 ) that has 10

What maximum price would you pay for a standard 8% level-coupon

What maximum price would you pay for a standard 8% level-coupon bond (with annual payments and a face value of $1,000 ) that has 10 years to maturity if the prevailing discount rate (your cost of capital) is 10% per annum? (Hint: Annual coupon payment = Coupon rate Face value )

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