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Lavinia is interested in investing in a 5-year bond with a face value of $1000...

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Accounting

Lavinia is interested in investing in a 5-year bond with a face value of $1000 that pays a 6.33 per cent coupon with interest to be received semiannually. Her required rate of return is 9.69 per cent. What is the most she would be willing to pay for this bond? (1 Mark for correct formula, 3 Marks for correct workings and 1 Mark for correct answer to equal a total of 5 Marks).

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