How much should you pay for the bond

Assignment Help Mathematics

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

Questions Cloud

Geologic events-such as volcanic activity : Geologic events, such as volcanic activity, plan an important role in forming many of our valuable resources, such as fossil fuel, lead, copper, and gold.

Define and find the ph at the equivalence point : Consider the titration of 52.0 mL of 1.2 M NaOH with 1.0 M HCl. Find the pH at all the following points. At the equivalence point.

What would drive interest rates in such an environment : what would an LM curve look like in a Quantity Theory world where velocity is fixed and is not impacted by interest rates (that is, M=kPY) what do you think would drive interest rates in such an environment

What percentage of the total capacity is being used : A water storage tank has the shape of a cylinder with diameter 22 ft. It is mounted so that the circular cross-sections are vertical. If the depth of the water is 20 ft, what percentage of the total capacity is being used? (Round the answer to one..

How much should you pay for the bond : 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.

Regular functional building : What elements distinguish a building as an architectural masterpiece as opposed to a regular functional building,

At what speed does chuck travel : Chuck travels 117 miles in the same time that dana travels 105 miles. If chuck rate of travel is 4mph more than dana's, and they travel the same length of time, at what speed does chuck travel?

How long will it take for the size of the colony to triple : A colony of bacteria increases according to the law of uninhibited growth (exponentially). How long will it take for the size of the colony to triple?

Compute the number of moles and the mass of sodium carbonate : 10.00 ml of 0.100M HCL were used to titrate .300g of the sample using phenolphthalein as an indicator. Calculate the number of moles and the mass of sodium carbonate present in the mixture.

User Account

All Pages