Find market price of bond if required market rates fall
A tax-exempt bond was recently issued at an annual 8 percent coupon rate and matures 20 years from today. The par value of the bond is $1,000. If required market rates fall to 5 percent, what is the market price of the bond?
Now Priced at $5 (50% Discount)
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Rated (4.3/5)
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A tax-exempt bond was recently issued at an annual 8 percent coupon rate and matures 20 years from today. The par value of the bond is $1,000.
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