A $1000, 8% bond redeemable at par in seven years bears coupons payable annually. Compute the premium

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A $1000, 8% bond redeemable at par in seven 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%.

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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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Question Posted: Feb 26, 2016 04:12 AM

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A $1000, 8% bond redeemable at par in seven years bears coupons payable annually. Compute the premium

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Face value 100000 b 8 Principal 100000 n 7 a i 65 since b i ...View the full answer

Contemporary Business Mathematics with Canadian Applications

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