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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.
1.What is the purchase price of the bond?
a. $1,157.86 b. $1,162.11 c. $1,256.65 d. none of these
2.What is the bond premium or discount?
a. $162.11 (premium) b. $162.11 (discount) c. $256.65 (premium) d. none of these
show your work plz
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