A 7 20-year municipal bond has a 10 000 face value i want


1. A 7%, 20-year municipal bond has a $10 000 face value. I want to receive at least 10% compounded semiannually on this investment. How much should I pay for the bond?

2. A Paradorian bond pays $500 (Paradorian dollars) twice each year and $5000 five years from now. I want to earn at least 300% annual (effective) interest on this investment (to compensate for the very high inflation in Parador). How much should I pay for this bond now?

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Mechanical Engineering: A 7 20-year municipal bond has a 10 000 face value i want
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