Zhang purchased a $8,000 bond that was paying a 6.50% compounded semi-annually coupon rate and had 6 more years to maturity. The yield rate at the time of purchase was 5.25% compounded semi-annually. a. How much did Zhang pay for the bond? $9,409.78 Round to the nearest cent b. What was the amount of premium or discount on the bond?

Answer rating: 100% (QA)

To calculate the price Zhang paid for the bond we can use the present value formula for a bond PV C1 ... View the full answer