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Bonds, Case Study Describe a bond issued at a premium. Explain why an investor would purchase a bond issued at a premium instead of a bond issued at...

Bonds, Case Study

Describe a bond issued at a premium. Explain why an investor would purchase a bond issued at a premium instead of a bond issued at par or a bond issued at a discount.

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An investor would purchase a bond issued at a premium (pay more than its maturity value) instead... View the full answer

premiumbond_fig2.jpg

Bond tyge Discount M Premium
Issue date 1/1/2019 1/1/2019 1/1/2019
Maturity date 1/1/2029 1/1/ 2029 1/1/2029
Face value $10,000.00 $10,000.00 $10,000.00
Coupon rate 2.00% 2.50% 5.00%
Yield to...

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