A Province of Manitoba $250,000 face value bond carrying a 2% coupon was issued on December 1, 2006, with 30 years until maturity. On January 10, 2010, when market yields were 4.19%, what is the premium or discount? $80,000 premium $87,826 premium $80,000 discount $87,826 discount

A Province of Manitoba $250,000 face value bond carrying a 2% coupon was issued on December 1, 2006, with 30 years until maturity. On January 10, 2010, when market yields were 4.19%, what is the premium or discount? $80,000 premium $87,826 premium $80,000 discount $87,826 discount

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

Section: Chapter Questions

Problem 1PS

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Question

A Province of Manitoba $250,000 face value bond carrying a 2% coupon was issued
on December 1, 2006, with 30 years until maturity. On January 10, 2010, when
market yields were 4.19%, what is the premium or discount?
O $80,000 premium
$87,826 premium
$80,000 discount
$87,826 discount

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