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What is the market value of the bond

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Reference no: EM132589280

A tax-exempt bond was issued at an annual 8% coupon rate and matures matures 20 years from today. The par value of the bond is $5,000.

i) If the required market rates are 8%, What is the market value of the bond?

ii) if the required market rates rise to 12%, What is the market value of the bond?

Reference no: EM132589280

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