1. (a) You require an annual return on your financial investments of 8% per annum. What would you be prepared to pay for
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1. (a) You require an annual return on your financial investments of 8% per annum. What would you be prepared to pay for
1. (a) You require an annual return on your financial investments of 8% per annum. What would you be prepared to pay for an annuity that offered you £1,000 every six months for the next two years? (b) A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the current yield-to-maturity for three-year bonds is 12%, what is the issue price?