Question: A . Explain what it means when bonds trade at a discount and a premium. ( 1 0 Marks ) B . A bond has

A. Explain what it means when bonds trade at a discount and a premium. (10 Marks)
B. A bond has the following structure - Face value K2000, maturity period of 10 years, coupon rate of 10% and a market rate of 15%. Find the dirty value of a bond six years after it had been issued and what it means to a bondholder. (10 Marks)

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