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What was the price of the bond when was issued

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Reference no: EM132712485

Suppose that Emerail Bhd issued a bond with 12 years maturity, a face value of RM1,000 and a coupon rate of 7% (semi-annual compounding). The yield to maturity on this bond when it was issued was 8%.

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Problem (i) What was the price of this bond when it was issued? Explain whether the bond was traded at a discount, at par or at a premium?

Reference no: EM132712485

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