Suppose an investor is considering the purchase of a 5 year, $1,000 par value bond bearing a nominal rate of interest of

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answerhappygod
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Suppose an investor is considering the purchase of a 5 year, $1,000 par value bond bearing a nominal rate of interest of

Post by answerhappygod »

Suppose an investor is considering the purchase of a 5 year,
$1,000 par value bond bearing a nominal rate of interest of 7% per
annum. If the investor's required rate of return is 8%, what should
he be willing to pay now to purchase the bond if it matures at
par?
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