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(Solved): You have just purchased a municipal bond with a 10000 par value for 9500. You purchased it immediate ...



You have just purchased a municipal bond with a 10000 par value for 9500. You purchased it immediately after the previous owner recieved a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 4 years, selling the bond immediately after you recieve the interest payment. If your desired nominal yield is 11.5% per year compounded semiannually, what will be your minimum selling price for the bond?



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