Question: A $6,000 bond that carries a 4.00% coupon rate payable semi-annually is purchased 6 years before maturity when the yield rate was 4.50% compounded semi-annually.

A $6,000 bond that carries a 4.00% coupon rate payable semi-annually is purchased 6 years before maturity when the yield rate was 4.50% compounded semi-annually.

a. Calculate the purchase price of the bond.

Round to the nearest cent

b. What is the amount of discount or premium on the bond?

(click to select)Premium, Discount, Par

amount is ______

Round to the nearest cent

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