12. A 20-year 1000 par value bond is purchased at a discount. The bond pays annual coupons of 4%. The amount for accumulation of discount in the 20th coupon is 9.5238. Calculate the amount of discount in the purchase price of this bond.

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
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12. A 20-year 1000 par value bond is purchased at a discount. The bond pays annual coupons of 4%. The
amount for accumulation of discount in the 20th coupon is 9.5238. Calculate the amount of discount
in the purchase price of this bond.
Transcribed Image Text:12. A 20-year 1000 par value bond is purchased at a discount. The bond pays annual coupons of 4%. The amount for accumulation of discount in the 20th coupon is 9.5238. Calculate the amount of discount in the purchase price of this bond.
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