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Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 15 years Coupon rate: 7 percent Semiannual payments Calculate the price

Microhard has issued a bond with the following characteristics:

Par: $1,000

Time to maturity: 15 years

Coupon rate: 7 percent

Semiannual payments

Calculate the price of this bond if the YTM is: 6 percent; will the bond sell at a premium, discount or par?

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