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A $50 000, 4% Bond with Semi-Annual Coupons Is Purchased

Question 21

Essay

A $50 000, 4% bond with semi-annual coupons is purchased three years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually.

Correct Answer:

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FV = $50 000; P/Y = C/Y = 2; PMT = 50 00...

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