Question: A $24,000, 7% bond redeemable at par with interest payable annually is bought 9.5 years before maturity. Determine the premium or discount and the purchase

A $24,000, 7% bond redeemable at par with interest payable annually is bought 9.5 years before maturity. Determine the premium or discount and the purchase price of the bond if the bond is purchased to yield

(a) 9% compounded annually;

(b) 5% compounded annually.

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