Ten $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased 18.5 years before maturity. Find the premium or discount and the purchase price if the bonds are bought to yield 7%.

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The Answer of Ten $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased 18.5 years before maturity. Find the premium or discount and the purchase price if the bonds are bought to yield 7%.

Ten $10 000, 4% Bonds with Interest Payable Semi-Annually and Redeemable