How much should you pay for the bond

Reference no: EM13192501

A municipal bond pays 8.3% interest compounded semiannually on its face value of $2,000. The interest is paid at the end of every half-year period. Fifteen years from now the face value of $2,000 will be returned. The current market interest rate for municipal bonds is 3.3% compounded semiannually. How much should you pay for the bond?

Reference no: EM13192501

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