Question
A $8,500 bond that carries a 4.00% coupon rate payable semi-annually is purchased 5 years before maturity when the yield rate was 5.00% compounded semi-annually.
A $8,500 bond that carries a 4.00% coupon rate payable semi-annually is purchased 5 years before maturity when the yield rate was 5.00% 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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ACCA Approved Study Text P7 Advanced Audit And Assurance
Authors: BPP
1st Edition
1472744349, 978-1472744340
