An Eminence Water Utility Revenue Bond matures in fifteen 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. What is the current price of the bond? What would be its price if the market rate was 6 percent?

Answer rating: 100% (QA)

You can calculate the current price of a bond using the bond pricing formula which considers the fac... View the full answer