Union local school district has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 23 years to maturity. The yield to maturity on these bonds is 2.6 percent and the bonds have par value of 5000. What is the price of the bonds?

Union local school district has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 23 years to maturity. The yield to maturity on these bonds is 2.6 percent and the bonds have par value of 5000. What is the price of the bonds?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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Question

Union local school district has bonds outstanding with a coupon rate of 3.2 percent paid
semiannually and 23 years to maturity. The yield to maturity on these bonds is 2.6 percent and the
bonds have par value of 5000. What is the price of the bonds?

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