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Dinoco Corporation issued a ten-year bond with a face value of $1,000, annual coupon (stated) rate of 12%, and market rate of 10%. The interest

Dinoco Corporation issued a ten-year bond with a face value of $1,000, annual coupon (stated) rate of 12%, and market rate of 10%. The interest payments are made on December 31 each year. What is the total premium or discount on the bond?

a.

Premium of $122.89

b.

Premium of $113.00

c.

Discount of $122.89

d.

Discount of $113.00

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