What is the maximum price the investor can pay for one of


A city is spending $48million on a new sewage system. To cover the cost, the city will issue bonds with a face value of $25,000, paying 9% interest per year, and redeemable at face value in 34 years. If an investor’s personal MARR is 14% per year, what is the maximum price the investor can pay for one of the municipal bonds if the bond is held until maturity?

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Financial Management: What is the maximum price the investor can pay for one of
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