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A $1000 bond with semi-annual coupons at j2 = 10% payable January 1 and July 1 each year matures on July 1, 2019, for $1050.
A $1000 bond with semi-annual coupons at j2 = 10% payable January 1 and July 1 each year matures on July 1, 2019, for $1050. a) Determine the price on January 1, 2014, to yield j2 = 10 %. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Price $ b) Is the bond purchased at a premium or a discount? O Discount O Premium c) Calculate the entries in the bond schedule on July 1, 2014, and January 1, 2015. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places.) Bond Interest Payment Interest on Book Value Book Value Adjustment Book Value A $1000 bond with semi-annual coupons at j2 = 10% payable January 1 and July 1 each year matures on July 1, 2019, for $1050. a) Determine the price on January 1, 2014, to yield j2 = 10 %. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Price $ b) Is the bond purchased at a premium or a discount? O Discount O Premium c) Calculate the entries in the bond schedule on July 1, 2014, and January 1, 2015. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round your answers to 2 decimal places.) Bond Interest Payment Interest on Book Value Book Value Adjustment Book Value
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