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A University of Iowa revenue bond pays an 4.5% level-coupon, matures in twenty years, and offers...

A University of Iowa revenue bond pays an 4.5% level-coupon, matures in twenty years, and offers an effective annual yield (i.e., true yield) of 4%. The bond has a principal value of $1000 and pays interest semiannually. What is the value of this bond, to the nearest dollar?

$1,074

$1,049

$456

$1,618

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE.

NOTHING WAS MENTIONED, SO USED EXCEL. IF YOU NEED WITH TABLE METHOD OR WITH FORMULA, LET ME KNOW, WILL DO THAT AS WELL

jeff jeffy answered 1 year ago
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