Question
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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Communication And Auditing A Step By Step Guide
Authors: Melanie McKay, Elizabeth Rosa
1st Edition
075931652X, 978-0759316522
