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A $5000, 6.5% bond with semi-annual interest coupons redeemable at par in 10 years is bought to yield 5% compounded semi-annually. Determine: (i) the premium

A $5000, 6.5% bond with semi-annual interest coupons redeemable at par in 10 years is bought to yield 5% compounded semi-annually. Determine:

(i) the premium or discount

(ii) the purchase price

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