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.

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.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter11: Notes, Bonds, And Leases

Section: Chapter Questions

Problem 5Q

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