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A $20,000 bond with interest at 7.5% payable semi-annually and redeemable at par is bought two years before maturity to yield 8.7% compounded semi-annually. Compute

A $20,000 bond with interest at 7.5% payable semi-annually and redeemable at par is bought two years before maturity to yield 8.7% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.

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