Determine the current market valuation of the bonds

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Reference no: EM13899324

Assume that the bonds of a nearby municipality are used to obtain monies through which city agencies gain monies to fund their law enforcement services. The bonds have a period of 10 years remaining until they mature and have a yield to maturity of 8.86%. Assume that interest is paid annually and that the interest rate of the coupon is 7.25%. Further, the bonds have a face value of $1000.00. Given these data, determine the current market valuation of the bonds.

Reference no: EM13899324

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