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A $3,000,000 issue of 5-year bond redeemable at par offers 2.8% coupons payable semi- annually. To find the purchase price of the bond to yield
A $3,000,000 issue of 5-year bond redeemable at par offers 2.8% coupons payable semi- annually. To find the purchase price of the bond to yield 4.1% compounded annually, you need to answer the following questions and choose the closest answer from the possible choices following each question: 4.1000% 1.4000% What is the market yield of the bond? (Express in percentage with four decimal places i.e., .0001%) What is the coupon rate (or bond rate) of the bond? (Express in percentage with four decimal places i.e., .0001%) Which rate over each payment interval do you use for calculating the purchase price manually using the formula approach? (Express in percentage with four decimal places i.e., .00019) What is the purchase price of the bond? This is a bond selling at (choose from "par," "a premium," or "a discount") Choose.. Choose... Choose
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