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A $27,000 bond with interest at 6.2% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.4% compounded semi-annually. Compute
A $27,000 bond with interest at 6.2% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.4% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule. The (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 bond is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Calculate the schedule. Round each answer to the nearest cent. End of Interest Payment Interval Bond Interest Received (Coupon) b= 3.1 % Interest on Book Value at Yield Rate i = 3.2% Amount of Discount Accumulated Book Value Remaining of Bond Discount 0 26,900.12 99.88 1 837.00 2 837.00 3 837.00 4 837.00
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