Value bond with redemption value

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Reference no: EM131544386

A 10 year, $1,000 par value bond with redemption value $1,000, has 5% coupons, payable semiannually.

X = Amount of premium if yield to maturity is an annual effective rate of 4%.

Y = Amount of discount if yield to maturity is an annual effective rate of 6%. Find X-Y.

Reference no: EM131544386

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