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A $6,500 bond pays interest at 5% compounded semi-annually. The bond is redeemable in 1 year 6 months and is purchased to yield 3%. Find
A $6,500 bond pays interest at 5% compounded semi-annually. The bond is redeemable in 1 year 6 months and is purchased to yield 3%.
- Find the purchase price of the bond.
- Calculate the premium or discount.
- Construct the appropriate bond schedule, including the totals for Bond Interest, Interest on Book Value at Yield, and Premium Amortized or Discount Accumulated.
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The World Economy Geography, Business, Development
Authors: Frederick P. Stutz, Barney Warf
6th edition
321722508, 321722507, 978-0321722508
