Question: You purchased a $ 2 0 , 0 0 0 bond when there was 1 7 years to maturity. The bond has a coupon rate

You purchased a $20,000 bond when there was 17 years to maturity. The bond has a coupon rate of 4.48%. At the time of purchase the yield to maturity was 2.98%.
How much did you pay for the bond? Enter your answer in blank #1.(Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)
Was the bond purchased at a premium or a discount? Enter "premium" or "discount" in blank #2.
What was the amount of premium or discount on the bond? Enter your answer in blank #3.(Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)
Blank## 1A
Blank # 2 A)
Blank# 3 A
 You purchased a $20,000 bond when there was 17 years to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!