Find minimum selling price for bond


You have now bought the municipal bond with a $10,000 par value for $9,500. You bought it immediately after previous owner received the semiannual interest payment. Bond rate is 6.6% per year payable semiannually. You plan to hold bond for 4 years, selling bond immediately after you receive interest payment. If your desired nominal yield is 4.5% per year compounded semiannually, find minimum selling price for bond?

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Mathematics: Find minimum selling price for bond
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