How much should you pay for the bond

Assignment Help Mathematics
Reference no: EM13192501

A municipal bond pays 8.3% interest compounded semiannually on its face value of $2,000. The interest is paid at the end of every half-year period. Fifteen years from now the face value of $2,000 will be returned. The current market interest rate for municipal bonds is 3.3% compounded semiannually. How much should you pay for the bond?

Reference no: EM13192501

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd