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A $29 000, 6.8% bond is purchased 7 years before maturity to yield 4.8% compounded semi-annually. The bond interest is payable semi-annually. How should we

A $29 000, 6.8% bond is purchased 7 years before maturity to yield 4.8% compounded semi-annually. The bond interest is payable semi-annually.

How should we expect this bond to sell?

a.Discount (bond rate = 6.8% > 4.8% = market rate)

b.At par Premium (bond rate = 6.8% = 4.8% = market rate)

c.Premium (bond rate = 6.8% > 4.8% = market rate)

d.Discount (bond rate = 6.8% < 4.8% = market rate)

e.Premium (bond rate = 6.8% < 4.8% = market rate)

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