Question: A $ 1 0 0 0 , 7 % bond redeemable at par in eight years bears coupons payable annually. Compute the premium or discount

A $

1000, 7 %

bond redeemable at par in eight years bears coupons payable annually. Compute the premium or discount and the purchase price if the yield, compounded annually, is

6.5 %

aDiscount, $

969.56

bDiscount, PP

=

1030.44

cPremium, $

969.56

dPremium, PP

=

1030.44

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