Question: A $5000, 4% bond with interest payable annually, redeemable at par in seven years, is purchased to yield 4.75% compounded annually. Find the premium or

A $5000, 4% bond with interest payable annually, redeemable at par in seven years, is purchased to yield 4.75% compounded annually. Find the premium or discount and the purchase price, and construct the appropriate bond schedule.

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