Question: You purchase a bond whose PAR value is 5000. The bond interest rate is 6 % compounded semi-annually You purchase the bond at its face

You purchase a bond whose PAR value is 5000. The bond interest rate is 6 % compounded semi-annually You purchase the bond at its face value, keep it for 3 years and sell itimmediately after your dividend payment at that time. If you wish to achieve an investmentrate of return of 12% compounded semi-annually at what price must you sell it to achieve thisrate of return

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