A bond has a maturity value of $3,000,000 payable in 7 years. These bonds have...
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A bond has a maturity value of $3,000,000 payable in 7 years. These bonds have a 3% per year coupon rate payable semi-annually, and the market yield was 4% per year when the bonds were purchased. Required a. Is this a discount bond or a premium bond? b. Compute the amount required to purchase this bond at the beginning of the 7-year period. Requirement a. Is this a discount bond or a premium bond? This is a discount bond because the coupon rate is lower than the market rate Requirement b. Compute the amount required to purchase this bond at the beginning of the 7-year period. (Use a financial calculator to compute the amount required to purchase the bond. Enter your final answer as a positive number and round to the nearest whole dollar.) Amount required to purchase bonds
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