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A $2000, 8.5% bond redeemable at par in seven years bears coupons payable annually. Compute the premium or discount and the purchase price if the
A $2000, 8.5% bond redeemable at par in seven years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is 7%, 8%, and 9%. The purchase price of the 7% yield bond is $0 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 7% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 8% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 8% yield bond is sold at a premium of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The purchase price of the 9% yield bond is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The 9% yield bond is sold at a discount of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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