V2

A municipality needs funding for upcoming infrastructure (water and sewer line) repair or replacement. They issue a series of $1,000, 7% semiannual, 12-year bonds. The bonds are initially sold at a discount for $970.If you buy a bond for $970, plan to sell it immediately following the 16th interest payment, and want to earn 10%% compounded semiannually on your money, what must be the selling price? Click here to access the TVM Factor Table calculator