im not sure of how to solve this problem at all. can you help by...
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im not sure of how to solve this problem at all. can you help by explaining and showing me how to do it? 
Q15. Problem Type:oupon bond Pricing $25% A Raytheon coupon bond matures in nine years, has an annual coupon rate of 3.125% (with semi-annual coupon payments) and will be redeemed at a face value of $1,000 at maturity. If you require an annual return of 3.9045% (semi-annually compounded) on this investment what is the most you should be willing to pay for this bond? A. $ 941.32 B. $ 941.79 C. $ 943.10 $ 943.55 $1,047.04 D. E. Effective Interest Rate: Te = - (-(-:-)) - 1 1. Net Present Value: NPV = PV(Inflows) - PV(Outflows). Continuous Compounding/Discounting: FV Cont. PVO * = Coupon Bond Pricing: C = F * Cpn Rate m PVCont. = FV0 *er*t. PV = C* (PVIFAr%t) + F* (PVIFr%,t)
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