Question
A $7,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 4.50% compounded semi-annually.
A $7,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 4.50% compounded semi-annually.
a. Calculate the purchase price of the bond.
b. What is the amount of discount or premium on the bond?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
9th Edition
0324537190, 9780324537192
