A $1000, 7% bond redeemable at par in eight years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is:
a) 6.5%
b) 7.5%
c) 8.5%

Question

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The Answer of A $1000, 7% bond redeemable at par in eight years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is:
a) 6.5%
b) 7.5%
c) 8.5%

A $1000, 7% Bond Redeemable at Par in Eight Years