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Calculate the price of the bond

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Question - A company issued a bond on January 1st, 2019. (Face value of $500,000, 3 years maturity, and coupon rate of 8% per year, paid semiannually).

Suppose the market interest rate is 10%.

Calculate the Price of the bond and indicate whether it is discount bond or premium bond.

Calculate the interest expense when the company pays the second coupon payment.

Reference no: EM132280240

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