What will be your minimum selling price for the bond?

You have just purchased a municipal bond with a $10000 par value for $9500. You purchased it immed Show more You have just purchased a municipal bond with a $10000 par value for $9500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6 percent per year payable semiannually. You plan to hold the bond for 7 years selling the bond immediately after you receive the interest payment. If your desired nominal yield is 2.5 percent per year compounded semiannually What will be your minimum selling price for the bond? Show less

QUICK QUOTE

Approximately 250 words