3. Shaney purchases a 5-year bond with a par value of $1000, 4.2% semiannual coupons, and redeemable at $913. If Shaney's yield rate is 4.5% convertible semiannually, determine whether the bond is sold at a premium or discount and compute the amount of that premium or discount
a. Premium = $4.02
b. Discount = $4.02
c. Premium = $4.06
d. Discount = $4.06
e. None of the above
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