Question
1a) A bond that has a face value of $2,000 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the
1a) A bond that has a face value of $2,000 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 5.05% compounded semi-annually.
___________Round to the nearest cent
1b)
A $5,500 bond that carries a 3.50% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 5.00% compounded semi-annually.
a. Calculate the purchase price of the bond.
$ _________Round to the nearest cent
b. What is the amount of discount or premium on the bond?
Choses:(Premium//Discount//Par)
amount is ____________Round to the nearest cent
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