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Garrett purchased a $1,500 bond that was paying a coupon rate of 5.60% compounded semi-annually and had 7 more years to mature. The yield at

Garrett purchased a $1,500 bond that was paying a coupon rate of 5.60% compounded semi-annually and had 7 more years to mature. The yield at the time of purchase was 6.80% compounded semi-annually.

a. How much did Garrett pay for the bond?

Round to the nearest cent

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

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