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What Is the Amount of Premium/discount Amortized or Accumulated for the Second

Question 73

Multiple Choice

What is the amount of premium/discount amortized or accumulated for the second payment interval of a $1500 bond that sold for $1627.32? The bond rate is 6.95% compounded semi-annually and the yield rate is 6% compounded semi-annually.


A) $4.30
B) $5.30
C) $1.40
D) $3.40
E) $2.30

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