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What is the premium or discount

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Question - Fish Corp. purchases a $500,000 face value bond which matures in two years. The coupon rate is 6% and the market rate is 7%. What is the premium or discount?

A) $0 premium/discount.

B) $9,039.40 discount.

C) $9,039.40 premium.

D) $500,000 discount.

Reference no: EM132649280

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