Question: A $5000, 6.25% bond with interest payable annually redeemable at par in eight years is purchased to yield 7.5% compounded annually. Find the premium or

A $5000, 6.25% bond with interest payable annually redeemable at par in eight years is purchased to yield 7.5% compounded annually. Find the premium or discount and the purchase price and construct the appropriate bond schedule.

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