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Martha purchased a $1,000 bond on November 19, 2025 when the yield-to-maturity was 4.85% compounded semi-annually. The bond had a coupon rate of 5.60% and

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Martha purchased a $1,000 bond on November 19, 2025 when the yield-to-maturity was 4.85% compounded semi-annually. The bond had a coupon rate of 5.60% and was redeemable on December 31, 2029. Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. a. What was the purchase price of the bond? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. a. What was the purchase price of the bond? Round to the nearest cent. b. What was the amount of discount or premium on the bond? 1

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