A municipal bond with a face value of $10,000was issued
Chapter 7, Problem 7.65(choose chapter or problem)
A municipal bond with a face value of $10,000was issued today with an interest rate of 6% peryear payable semiannually. The bond matures20 years from now. If an investor paid $9,000 forthe bond and holds it to maturity, all of the followingequations will yield the correct semiannualrate of return except:(a) 0 = 9000 + 300(P/A,i*,40)+ 10,000(P/F,i*,40)(b) 0 = 9000(F/P,i*,40) + 300(F/A,i*,40)+ 10,000(c) 0 = 9000(A/P,i*,40) + 300+ 10,000(A/F,i*,40)(d) 0 = 9000 + 600(P/A,i*,40)+ 10,000(P/F,i*,40)
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