Question
Prisha purchased a $4,000 bond that was paying a coupon rate of 5.80% compounded semi-annually and had 7 more years to mature. The yield at
Prisha purchased a $4,000 bond that was paying a coupon rate of 5.80% compounded semi-annually and had 7 more years to mature. The yield at the time of purchase was 6.50% compounded semi-annually.
a. How much did Prisha pay for the bond?
Round to the nearest cent
b. What was the amount of premium or discount on the bond?
(click to select)PremiumDiscount
amount was
Round to the nearest cent
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Financial Trading And Investing
Authors: John Teall
3rd Edition
0323909558, 978-0323909556
