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A $1,000 bond has a 3.20% rate and matures on March 1, 2034. Interest on the bond is payable semi-annually. If the bond was purchased
A $1,000 bond has a 3.20% rate and matures on March 1, 2034. Interest on the bond is payable semi-annually. If the bond was purchased on September 1, 2028, when the interest rate in the market was 3.70% compounded semi-annually, what was the purchase price of the bond? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. a. What was the purchase price of the bond? $0.00 Round to the nearest cent b. What was the amount of discount or premium on the bond? amount is $0.00
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