The village of oak park is selling bonds to finance infrastructure maintenance and improvements. The bonds...

The village of oak park is selling bonds to finance infrastructure maintenance and improvements. The bonds have a face amount of $5,000,000 and carry a 6% coupon rate. Interest is paid semi-annually until the bonds mature in 10 years. How much profits will the village make from the sale of its bonds if current market interest rates are 4.5%?

(Hint: PV of semi-annual coupon payment is $2,394,556.86)

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jeff jeffy answered 1 year ago

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