Question: A $ 2 7 5 , 0 0 0 face value Province of British Columbia bond carrying a 1 0 . 6 % coupon is

A $275,000 face value Province of British Columbia bond carrying a 10.6% coupon is issued on September 5,1990, with 30 years until maturity. The bond is purchased on March 5,2002, when posted rates are 5.98%. Calculate the purchase price of the bond. What is the amount of its premium or discount?

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