A $50 000, 4% bond with semi-annual coupons is purchased three years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually. 31) A $125 000 bond, redeemable at par in three years with 7.5% coupons payable quarterly, is bought to yield 6% compounded quarterly. (i) Compute the premium or discount and the purchase price. (ii) Construct a schedule for amortization of premium.

A $50 000, 4% bond with semi-annual coupons is purchased three years before maturity. Calculate the discount or premium if the bond is sold to yield 6% compounded semi-annually. 31) A $125 000 bond, redeemable at par in three years with 7.5% coupons payable quarterly, is bought to yield 6% compounded quarterly. (i) Compute the premium or discount and the purchase price. (ii) Construct a schedule for amortization of premium.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 17E

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