An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond?

Name: An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond?
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11ea937b_35f0_df7c_a419_c317645a74b7_TB2599_00 *PVA of $1: n = 40; i = 5%
**PV of $1: n = 40; i = 5%

An Investor Purchases a 20-Year, $1,000 Par Value Bond That