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What is the value of the discount or premium

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Question - Company Z issues a $700,000 5% bond due in 20 years. Interest is payable annually at year-end. The market rate is 4%. What is the value of the discount or premium associated with the bond at issuance?

a. $95,135 premium

b. $95,135 discount

c. $87,235 premium

d. $87,235 discount

Reference no: EM132686981

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