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: A 12 year bond with an annual coupon rate of 9.50% and a face value of $21500 is bought at a (effective annual) yield
: A 12 year bond with an annual coupon rate of 9.50% and a face value of $21500 is bought at a (effective annual) yield of 8.77%. For each part below (2 marks each), be sure to give the formula as well as the numerical answer. a) What is the purchase price of the bond? b) How much is the premium/discount? c) How much of coupon payment 3 is interest? 1 d) How much of coupon payment 3 is amortization of discount/premium?
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