What is the market price of the bond

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Reference no: EM13130739

Healthcare:

Bond Valuation. A tax- exempt bond was recently issued at an annual 7 percent coupon rate and matures 30 years from today. The par value of the bond is $5,000.

a. If required market rates are 7 percent, what is the market price of the bond?

b. IF market rates fall to 4 percent, what is the market price of the bond?

c. If required market rates rise to 14 percent, what is the market price of the bond?

d. At what required market rate (4, 7, or 14 percent) does the above bond sell at a discount? At a premium?

Reference no: EM13130739

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