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You buy a 4 . 5 % par value bond today. The bond matures in 8 years and yields 4 . 3 5 % compounded
You buy a par value bond today. The bond matures in years and yields compounded semiannually. Given the bond interest is paid semiannually, did you pay a premium or discount for the bond?
Question options:
premium
discount
neither
I have no clue :)
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