You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 6 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 5.5% per year compounded semiannually, what will be your minimum selling price for the bond?

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Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A:

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A: Interest Rate = r = 5%Initial Cost of Bond = ic = $3000

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A: in this we have to calculate present value FACTOR and from that we will annual payment.

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Q: What is the annual percentage rate ( APR) of the loan?

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Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

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A: Current price of bond is the sum of present value of cash flows from the bond.

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Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A:

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Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

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Q: Stacy purchases a $60,000 bond for $57,500. The coupon rate is 6% per year payable quarterly. The…

A: The present worth of the bond will be the present value of the coupon and principal payments.

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Q: Please view the following video before answering this question. Click here to watch the video Ten…

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Q: You purchased a bond at a price of $2,100. In 30 years when the bond matures, the bond will be worth…

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Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

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A: Value of money grow with time and according to interest rate and more is compounding more is the…