What is the price of the bond


Problem:

A 5,000 par value municipal bond with a coupon rate of 2.7 percent has a yield to maturity of 3.9 percent. If the bond has 10 years to maturity,

Required:

Question 1: What is the price of the bond? Explain lengthily and show all workings.

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Finance Basics: What is the price of the bond
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