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A $8,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 5.00% compounded semi-annually.

A $8,000 bond that carries a 3.50% coupon rate payable semi-annually is purchased 7 years before maturity when the yield rate was 5.00% compounded semi-annually.

a. Calculate the purchase price of the bond. $ $0.00 Round to the nearest cent

b. What is the amount of discount or premium on the bond? amount is $0.00

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