Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. union local school district has bonds outstanding

Union Local School District has bonds outstanding with a coupon rate of 4.6 percent paid semiannually...

80.2K

Verified Solution

Question

Finance

Union Local School District has bonds outstanding witha coupon rate of 4.6 percent paid semiannually and 21 years tomaturity. The yield to maturity on these bonds is 3.9 percent andthe bonds have a par value of 5000.

What is the dollar price of each bond?

Answer & Explanation Solved by verified expert
4.1 Ratings (645 Votes)
Price of bond C x 11 1r nr M1rn C Coupon amount Face Value x Coupon rate No of coupon payments annually 5000 x 46 2 5000    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Union Local School District has bonds outstanding witha coupon rate of 4.6 percent paid semiannually and 21 years tomaturity. The yield to maturity on these bonds is 3.9 percent andthe bonds have a par value of 5000.What is the dollar price of each bond?

Other questions asked by students

Q

Use Tanabe-Sugano diagrams to predict the number of transitions for the following species: a) Mn(H2O)6 ^2+ b) Cu(H2O)6...

Chemistry
Q

A hydrogen discharge tube is used to illuminate a 10,000-line/cm diffraction grating. The grating produces first-order...

Physics
Q

1Identify three advantages to studying development from a lifespan perspective. 2From a theoretical perspective, why do you...

Psychology
Q

Mississippi River East South Central Misefeelppl Jackson Memphis Oblo River Kentucky Nashville Tennessee Mississippi Alabama...

Biology
Q

Suppose the scores of students on an exam are Normally distributed with a mean of...

Calculus
Q

Sketch a graph of the function f x 2 2 5 sin 4x 4 3...

Calculus
Q

Solve the following inequality Write the solution set using interval notation Express all values as...

Algebra
Q

Write the vector v in the form ai bj given its magnitude v and the...

Algebra
Q

alison's dress shop buys dresses from mcguire manufacturing. alison purchased dresses from mcguire on july...

Accounting
Q

John organized Toucan Corporation 10 years ago. He contributed property worth $1,000,000 (basis of $200,000)...

Accounting
Q

Multherin's stock has a beta of 1.25 to required retums 9,65%, and the risk free...

Finance
Q

could you show the formulas as well please

Accounting