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Assume a 10-year $1,000,000 bond issued with a 2.5% annual contractual rate, but with a current market interest rate of 1.5%. a) Determine the selling

Assume a 10-year $1,000,000 bond issued with a 2.5% annual contractual rate, but with a current market interest rate of 1.5%.

a) Determine the selling price of the bond.

b) Determine the amount of the premium.

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