Issued bonds to finance the purchase of new building
Course:- Financial Management
Reference No.:- EM13891868

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Several years ago, the hospital needed additional space and issued bonds to finance the purchase of a new building. Each bond has a face value of $15,000, a 3.8% coupon rate, and a maturity of 20 years. Interest is paid semiannually. The current market interest rate is 4.3%. What is the most you be willing to pay for one of these bonds today if they were issued exactly:

Three years ago?

Nine years ago?

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