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Q 13-5 A bond pays semiannual coupons at an annual rate of 10% of the nominal value. The annual effective yield to maturity is currently

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Q 13-5 A bond pays semiannual coupons at an annual rate of 10% of the nominal value. The annual effective yield to maturity is currently 4%, and the price paid per $1,000 par value is $1,404.06. If the term of the bond is 7 years, calculate the redemption payment. Is this a premium bond? If so what is its premium? NOTE: Premium is calculated to be (Price) - (Redemption Value). Pem/ $350.00

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