Question
A $1,000, 9.5% bond with semiannual coupons redeemable at par on March 1, 2026, is bought on September 19, 2017, to yield 7% compounded semiannually.
A $1,000, 9.5% bond with semiannual coupons redeemable at par on March 1, 2026, is bought on September 19, 2017, to yield 7% compounded semiannually.
What is the purchase price of the bond?
a. $1,157.86 b. $1,162.11 c. $1,256.65 d. none of these
What is the bond premium or discount?
a. $162.11 (premium) b. $162.11 (discount) c. $256.65 (premium) d. none of these
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
4th Canadian edition
978-1259269868, 978-1259103292
