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

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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
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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?

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