Question: A $1000, 8.5% bond with interest payable annually is purchased six years before maturity to yield 10.5% compounded annually. Compute the premium or discount and

A $1000, 8.5% bond with interest payable annually is purchased six years before maturity to yield 10.5% compounded annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.

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As per the given information Face value 1000 Bmd int rate 85 Term 6 years Coupon amount 1000 x ... View full answer

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