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A $10,000, five-year bond redeemable at par and bearing interest at 6.5% payable semi-annually is purchased at a market price of $10,000 four years and

A $10,000, five-year bond redeemable at par and bearing interest at 6.5% payable semi-annually is purchased at a market price of $10,000 four years and 10 months before maturity. a) Determine the cash price of the bond. b) Explain bond rate and principal of a bond.

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