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Ethan purchased a $2,000 bond that was paying a coupon rate of 6.80% compounded semi-annually and had 7 more years to mature. The yield at

Ethan purchased a $2,000 bond that was paying a coupon rate of 6.80% compounded semi-annually and had 7 more years to mature. The yield at the time of purchase was 5.90% compounded semi-annually.

a. How much did Ethan pay for the bond?

b. What was the premium or discount on the bond?

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