Solved Question: You have been given the opportunity to purchase a bond issued

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You have been given the opportunity to purchase a bond issued by the famous XYZ
Corporation. The bond has 10 years to maturity, par value of $1000, a coupon rate of 12%,
and pays interest semiannually. If you purchase the bond, you will have to withdraw funds
from your savings account which provides you with a guaranteed 8% interest per year;
interest is paid semiannually. What is the maximum price you would pay for the XYZ bond?

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