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Swanson Inc. purchased $400,000 of Malone Corp. ten-year bonds with a stated interest rate of 8% payable quarterly. At the time the bonds were purchased,
Swanson Inc. purchased $400,000 of Malone Corp. ten-year bonds with a stated interest rate of 8% payable quarterly. At the time the bonds were purchased, the market interest rate was was 12%. Determine the amount of premium or discount on the purchase of the bonds: A. $92,442 premium B. $92,442 discount C. $81,143 premium D. $81,143 discount
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