Would you purchase it at premium or discount price

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1. A $2,000 bond is redeemable at a coupon rate of 6.5% in 10 years. Would you purchase it at premium or discount price if you want it to yield 8%?

2. A bond has a face value of $2,000 redeemable in 5 years at a coupon rate of 8%. Construct the premium amortization schedule if the bond is to be purchased to yield 6%

Reference no: EM131307097

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