Question: A $100 000, 5% bond with interest payable semi-annually redeemable at par on July 15, 2027, was purchased on April 18, 2016, to yield 7%

A $100 000, 5% bond with interest payable semi-annually redeemable at par on July 15, 2027, was purchased on April 18, 2016, to yield 7% compounded semi-annually. Determine
(a) The premium or discount;
(b) The purchase price.

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