Question: A $ 5000 , 6.5 % bond with semi - annual interest coupons redeemable at par in 10 years is bought to yield 5 %

A $ 5000 , 6.5 % bond with semi - annual interest coupons redeemable at par in 10 years is bought to yield 5 % compounded semi - annually . Determine :

( i ) the premium or discount

( ii ) the purchase price

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