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A 25000$, 7.5% bond with quarterly interest coupons redeemable at par in 8 years is purchased to yield at 8.5% compounded quarterly. (i) What is

A 25000$, 7.5% bond with quarterly interest coupons redeemable at par in 8 years is purchased to yield at 8.5% compounded quarterly.

(i) What is the premium or discount?

(ii) What is the purchase price?

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