What Is the Amount of Premium/discount for a Bond That

question 50

Multiple Choice

What is the amount of premium/discount for a bond that has 4 years till it matures? The face value of the bond is $100 000 and it has a bond rate of 6.4% compounded semi-annually. The bond is sold to yield 7.4% compounded semi-annually.

• A) $3084.47
• B) $3840.47
• C) $3048.47
• D) $3408.47
• E) $3184.47

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Definitions:

Portuguese

Refers to something of, from, or related to Portugal, including its culture, people, or language.

Western Atlantic Trade

A historical trading network across the Atlantic Ocean, primarily involving European countries and their American and African colonies, facilitating the exchange of goods, slaves, and resources from the 16th to the 19th centuries.

Spanish Conquistadors

Explorers and soldiers from Spain who, during the 16th century, conquered large portions of the Americas, including the Aztec and Inca empires.

Indian Resistance

Efforts by Native American peoples to resist European colonization, the encroachment on their lands, and the loss of their cultures, particularly from the 16th to the 19th centuries.