A $100 000 bond, redeemable at 110 in seven years with 6.75% coupons payable annually, is bought to yield 7.25% compounded annually.
(i) Determine the discount and the purchase price.
(ii) Construct a schedule of accumulation of discount.

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The Answer of A $100 000 bond, redeemable at 110 in seven years with 6.75% coupons payable annually, is bought to yield 7.25% compounded annually.
(i) Determine the discount and the purchase price.
(ii) Construct a schedule of accumulation of discount.

A $100 000 Bond, Redeemable at 110 in Seven Years