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Posted on Jul 24, 2024

A $5,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 5 years before maturity when the yield rate was 4.50% compounded semi-annually.

a. Calculate the purchase price of the bond.

Round to the nearest cent

b. What is the amount of discount or premium on the bond?

(click to select)PremiumDiscountPar

amount is $ .

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