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2 ) In 2 0 0 5 , ABC Company bought a bond with a face value of $ 7 , 5 0 0 ,

2) In 2005, ABC Company bought a bond with a face value of $7,500,5.75% coupon rate and 20 years of maturity. After 7 years, ABC Company wants to know the present value of the bond, while the same bond is offered at 6.30% by Treasury. Determine the ABC Companys bond value at the time. In addition, determine the premium or discount for the bond if apply.

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