A 5-year 6% $2,000 bond with semi-annual coupons is sold to yield the investor 2% nominal interest, convertible semiannually. The bond sells for $1,900. Then the bond 14. sells at a: (A) premium of $325.12. (B) premium of $428.95. (C) premium of $238.95. (D) discount of $325.12. (E) discount of $428.95. (F) discount of $238.95.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A 5-year 6% $2,000 bond with semi-annual coupons is sold to yield the investor
2% nominal interest, convertible semiannually. The bond sells for $1,900. Then the bond
14.
sells at a:
(A) premium of $325.12.
(B) premium of $428.95.
(C) premium of $238.95.
(D) discount of $325.12.
(E) discount of $428.95.
(F) discount of $238.95.
Transcribed Image Text:A 5-year 6% $2,000 bond with semi-annual coupons is sold to yield the investor 2% nominal interest, convertible semiannually. The bond sells for $1,900. Then the bond 14. sells at a: (A) premium of $325.12. (B) premium of $428.95. (C) premium of $238.95. (D) discount of $325.12. (E) discount of $428.95. (F) discount of $238.95.
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