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stark Industries issues a $1,600,000 bond that will mature in 23 years. The coupon rate is 8.1% with semi-annual payments. If the market rate is

stark Industries issues a $1,600,000 bond that will mature in 23 years. The coupon rate is 8.1% with semi-annual payments. If the market rate is 14.25% compounded semi-annually, what is the price of the bond?

What is the coupon payment for the bond? (4)

END/BEG (1)

P/Y (1)

C/Y (1)

N (2)

I/Y (1)

PV (4)

PMT (1)

FV (2)

Is the bond being sold at a discount or a premium?

Why?

Solve with a BA II plus calculator

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