Due to a significant troop buildup at the local military base, a school district issued $10,000,000 in bonds to build new schools The bond coupon rate is 6 per year, payable semiannually, with a maturity date of 20 years If an investor is able to purchase one of the bonds that has a face value of $...

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Due to a significant troop buildup at the local military base, a school district issued $10,000,000 in

Question:

Due to a significant troop buildup at the local military base, a school district issued $10,000,000 in bonds to build new schools. The bond rate is 6% per year, payable semiannually, with a date of 20 years. If an investor is able to purchase one of the bonds that has a of $5000 for $4800, what rate of return per 6 months will the investor realize? Assume the bond is kept to Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...