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Mark purchased a $3,000 bond that was paying a 4.50% compounded semi-annually coupon rate and had 6 more years to maturity. The yield rate at

Mark purchased a $3,000 bond that was paying a 4.50% compounded semi-annually coupon rate and had 6 more years to maturity. The yield rate at the time of purchase was 5.50% compounded semi-annually.

a. How much did Mark pay for the bond?

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

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