Question
A $6,500 bond that carries a 3.50% coupon rate payable semi-annually is purchased 4 years before maturity when the yield rate was 4.50% compounded semi-annually.
A $6,500 bond that carries a 3.50% coupon rate payable semi-annually is purchased 4 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?
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Principles Of Public Finance
Authors: Toshihiro Ihori
1st Edition
9811023883, 978-9811023880
