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What Is the Amount of Premium/discount for a Bond That

Question 80

Multiple Choice

What is the amount of premium/discount for a bond that has 4 years till it matures? The face value of the bond is $100 000 and it has a bond rate of 6.4% compounded semi-annually. The bond is sold to yield 7.4% compounded semi-annually.


A) $3084.47
B) $3840.47
C) $3048.47
D) $3408.47
E) $3184.47

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