A 4700 municipal bond is offered for sale the bond will pay


A $4700 municipal bond is offered for sale. The bond will pay 6 % annual interest by paying the $282 to the bondholder every year for a period of 12 years. At the end of 12 years, the $4700 will be paid to the bondholder along with the final interest payment of $282. Determine the amount you would be willing to pay for the bond if you consider 10 % nominal annual interest to be an appropriate bond yield.

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Econometrics: A 4700 municipal bond is offered for sale the bond will pay
Reference No:- TGS0577032

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