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A 20-year, $50 000 bond was issued on August 18, 2005 with a coupon rate of 6.9%. The bond is sold on February 18, 2017
- A 20-year, $50 000 bond was issued on August 18, 2005 with a coupon rate of 6.9%. The bond is sold on February 18, 2017 when the yield rate is 5.3% compounded semiannually.
- Draw a detailed and fully labelled timeline for the sale of this bond.
- Calculate the purchase price on the above-mentioned date.
- Determine the amount of discount or premium on the sale of this bond.
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Forensic And Investigative Accounting
Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson
9th Edition
0808053221, 9780808053224
