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Management 20-%20Quiz%202%20-2.pdf * * 1 100% 1. A $7000 bond bearing interest at 7% payable semi-annually matures in 8 year itis bought to yield 5.5%

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Management 20-%20Quiz%202%20-2.pdf * * 1 100% 1. A $7000 bond bearing interest at 7% payable semi-annually matures in 8 year itis bought to yield 5.5% compounded semi-annually, what is the purchase price ot une bond? 2. A 100005, 3% bond with quarterly interest coupons redeemable at par in 10 years is purchased to yield at 4.5% compounded quarterly. What is the premium or discount? (1) What is the purchase price? 2. A 10000$, 3% bond with quarterly interest coupons redeemable at par in 10 years is purchased to yield at 4.5% compounded quarterly. () What is the premium or discount? (ii) What is the purchase price

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