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1 A 13 year bond with a face value of $50,000.00 pays annual coupons at a rate of 8.750%. It is purchased at a (effective

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A 13 year bond with a face value of $50,000.00 pays annual coupons at a rate of 8.750%. It is purchased at a (effective annual) yield of 8.020%. For each part below, be sure to give the formula as well as the numerical answer. a) (3 marks) What is the purchase price of the bond? b) (3 marks) How much is the premium/discount? c) (3 marks) How much of coupon payment 4 is interest? d) (3 marks) How much of coupon payment 4 is amortization of discount/premium

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