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Sara purchases a 3-year bond with a par value of $100,7% annual coupons, and redeemable at $111. The annual effective yield rate is 3% a)

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Sara purchases a 3-year bond with a par value of $100,7% annual coupons, and redeemable at $111. The annual effective yield rate is 3% a) Find the bond purchase price P b) The bond is sold at a A. premium B. discount c) Fill in the the bond amortization schedule Amount for Period Coupon Interest Earned Amortization o Book Value Premiumm IB- 0 2 3 Total Note that ,-: P-C-The Amount of Premium. The "principal repaid" is called the "amount for amortization of premium It is also called the "write down" because it reduces the book value of the bond from P to

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