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A 5-year bond with semiannual coupons is redeemable for $105. The bond has a yield of 6% convertible semiannually and the base amount of the
A 5-year bond with semiannual coupons is redeemable for $105. The bond has a yield of 6% convertible semiannually and the base amount of the bond is $130. (Note: The base amount, denoted by G, is defined by Gi=Fr.) Compute the price of the bond. Give your answer to two decimal places. price = Was the bond sold at a premium or a discount? discount premium Compute the value of the premium or discount. Give your answer to two decimal places
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