10. A $275,000 face value Province of British Columbia bond carrying a 10.6% coupon is issued on September 5, 1990, with 30 years until maturity. The bond is purchased on March 5, 2002, when posted rates are 5.98%. Calculate the purchase price of the bond. What is the amount of its premium or discount?

ANS: $416,032.19 and the premium = $141,032.19

Show ALL your work even if you used a calculator. You MUST use the TI BA II calculator features (N, I/Y, PV, PMT, FV) to solve questions whenever possible.

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DO NOT answer if you are not using calculator features, thank you. DO NOT answer if you are not using calculator features, thank you.

DO NOT answer if you are not using calculator features, thank you. DO NOT answer if you are not using calculator features, thank you.

DO NOT answer if you are not using calculator features, thank you. DO NOT answer if you are not using calculator features, thank you.