Union Local School District has bonds outstanding with a coupon rate of 3.3 percent paidsemiannually and 20 years to maturity. The yield to maturity on these bonds is 3.7 percent andthe bonds have a par value of $10,000. What is the dollar price of the bonds? Note: Do notround intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Step 1: Given that, M = Maturity amount = $10,000.00n= Number of periods to maturity = 20 * 2 = 40i…

Answered: Union Local School District has bonds…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Union Local School District has a bond outstanding with a coupon rate of 3.3 percent paid semiannually and 20 years to maturity. The yield to maturity on this bond is 3.7 percent, and the bond has a par value of $10,000. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Bond price 9,637.52 x $
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