Question: Suppose that a 30-year municipal bond has a maturity value of $5000 and a coupon rate of 8%, with coupons paid semiannually. Find the market

Suppose that a 30-year municipal bond has a maturity value of $5000 and a coupon rate of 8%, with coupons paid semiannually. Find the market price of the bond if the current yield rate is 10% compounded semiannually. Is this bond selling at a discount or at a premium?

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