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A $10,000 bond that carries a 3.00% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 5.00% compounded semi-annually.
A $10,000 bond that carries a 3.00% 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? amount is Round to the nearest cent
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Local Public Finance
Authors: René Geissler, Gerhard Hammerschmid, Christian Raffer
1st Edition
3030674681, 978-3030674687
