Question: a) A bond with face value $1000, redemption value $ 2000, and semi-annual coupons at j2 16% is purchased to yield the investment rate to

a) A bond with face value $1000, redemption value $ 2000, and semi-annual coupons at j2 16% is purchased to yield the investment rate to matu- rity j2 = 8%. Is it purchased at a premium or at a discount? Find the purchase price. b) A different bond with face value $1000, redeemable at 110 with semi-annual coupons at j2 = 9% is purchased for $ 792.96 to yield j2 = 12%. Find the number of years to maturity. a) A bond with face value $1000, redemption value $ 2000, and semi-annual coupons at j2 16% is purchased to yield the investment rate to matu- rity j2 = 8%. Is it purchased at a premium or at a discount? Find the purchase price. b) A different bond with face value $1000, redeemable at 110 with semi-annual coupons at j2 = 9% is purchased for $ 792.96 to yield j2 = 12%. Find the number of years to maturity
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