What is the value of the bond fir given market rates


Problem: A Hospital plans on issuing a tax-exempt bond at 6% coupon annual rate that matures at 30 years, the the par value of the bond is $1,000.

If required market rates are 6 percent, what is the value of the bond?

If required market rates fall to 12 percent what is the value of the bond?

At what required market rate (3,6, or 12 percent) does the above bond sell at a discount? At a premium?

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Finance Basics: What is the value of the bond fir given market rates
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