Question
A $8,500 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 $8,500 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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Investments
Authors: Zvi Bodie, Alan J. Marcus, Alex Kane
6th Edition
0072861789, 9780072861785
