Question: . A $ 5 0 0 0 bond that pays 7 % semi - annually is redeemable at par in 1 5 years. Calculate the

. A $5000 bond that pays 7% semi-annually is redeemable at par in 15 years. Calculate the purchase price if it is sold to yield 5% compounded semi-annually (Purchase price of a bond is equal to the present value of the redemption price plus the present value of the interest payments).

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