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Business, 13.11.2019 23:31 thhfvbjurddee

Suppose a municipality is looking to issue debt to raise capital. the $1000 face value bond will be a deferred coupon bond and will have a zero percent coupon the first five years and subsequently have a 8% (annual) coupon the following 15 years (maturity is in 20 years). given this information, what is the price of the bond if the bond is expected to yield 7.5%?

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