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ANSWER ALL 2. A 8-year 1,000 par-value bond with 4% annual coupons was bought to yield 3% annually. (1) (6 pts) Find the price of
ANSWER ALL 
2. A 8-year 1,000 par-value bond with 4% annual coupons was bought to yield 3% annually. (1) (6 pts) Find the price of the bond. (2) (4 pts) Is the bond sold at a premium or at a discount? Why? (3) (6 pts) Determine the interest due in the 4th coupon payment. (4) (6 pts) Determine the amount of adjustment of principal in the 4th coupon payment Step by Step Solution
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The Lifestyle Investor
Authors: Justin Donald, Ryan Levesque, Mike Koenigs
1st Edition
1636800130, 978-1636800134
