Question
A $5000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2022, was purchased on September 1, 2013, to yield 7% compounded semi-annually.
A $5000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2022, was purchased on September 1, 2013, to yield 7% compounded semi-annually.
a) Is it a premium or discount?
b) What was the purchase price?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
9th edition
978-1119493631
