An Eminence Water Utility Revenue Bond matures in 15 years, pays a 5.5 percent coupon rate semiannually, and has a face value of $5,000. What is the current price of the bond? What would be its price if the market rate were 6 percent?
Paper details An Eminence Water Utility Revenue Bond matures in 15 years, pays a 5.5 percent coupon rate semiannually, and has a face value of $5,000. The market interest rate for similar risk and maturity municipal bonds is 4 percent. Questions: What is the current price of the bond? What would be its price if […]