Question: Planning #5 (similar to): Return on Bond Question Help Return on Bonds. Timothy has an opportunity to buy a $3,000 par value municipal bond with

Planning #5 (similar to): Return on Bond Question Help Return on

Planning #5 (similar to): Return on Bond Question Help Return on Bonds. Timothy has an opportunity to buy a $3,000 par value municipal bond with a coupon rate of 6% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 9%, what should he pay for the bond? If Timothy requires a return of 9%, the amount he should pay for the bond is $ (Round to the nearest cent.)

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