Find what is the premium or discount

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Question 1) A ten year, $10,000 bond is purchased after 5 years and 6 months. If the bond rate is 6.5% payable semi-annually and money is worth 4.5% compounded semi-annually, what is the purchase price of the bond?

Question 2) Bond certificates of $5000 are issued at 3% payable quarterly and are redeemable at par in three years. If the bonds are sold to yield 5% compounded quarterly, what is the premium/discount?

Question 3) A $5000, 4.81% bond with semi-annual coupons is redeemable at par in 10 years and is purchased at 98.7. What is the approximate yield rate?

Reference no: EM132590054

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