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Determine the premium and the purchase price of the bond

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Reference no: EM132913993

Problem 1: A ?$24,000?, 7?% bond redeemable at par with interest payable annually is bought 10 years before maturity. Determine the premium or discount and the purchase price of the bond if the bond is purchased to yield

?(a) 6?% compounded? annually;

?(b) 8?% compounded annually.

Reference no: EM132913993

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