You purchased a $20,000 bond when there was 17 years to maturity. The bond has acoupon rate of 4.48 %. At the time of purchase the yield to maturity was 2.98%.How much did you pay for the bond? Enter your answer in blank #1. (Round)your answer to 2 decimal places and include the $ sign. Enter your answer inthe form $1,234.56.)• Was the bond purchased at a premium or a discount? Enter "premium" or"discount" in blank #2.• What was the amount of premium or discount on the bond? Enter your answerin blank #3. (Round your answer to 2 decimal places and include the $ sign.Enter your answer in the form $1,234.56.)Blank #1Blank #2Blank # 3

P = sum_{t=1}^{n} C/(1 + r)^t + F/(1 + r)^nwhere:- ( P ) is the present value (price) of the bond.-…

Answered: You purchased a $20,000 bond when there…

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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Similar questions

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