A 15-year municipal bond was issued 5 years ago its coupon, Ask an Expert

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A 15-year municipal bond was issued 5 years ago. Its coupon interest rate is 8%, interest payments are made semi-annually, and its face value is $1,000.

If the current market interest rate is 12.36% what should the price of the bond be?

Note: The issuer of the bond makes interest payments to the bond holder at the coupon rate as well as a final payment.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92753554

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