Question
Asked Oct 2, 2019
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Union Local School District has a bond outstanding with a coupon rate of 2.9 percent paid semiannually and 24 years to maturity. The yield to maturity on this bond is 3.4 percent, and the bond has a par value of $10,000. 

 

What is the price of the bond?

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Expert Answer

Step 1

Calculation of Price of the Bond:

The price of the bond is $9,184.18.

Excel Spreadsheet:

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В А $10,000 1 Face Value 2 Coupon Rate 3 Coupon Payment 4 Yield to Maturity 5 Number of Periods Price of BondS9,184.18 2.90% $145.00 1.70% 48 6

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