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  3. according to the figure below, as a bond approache

According to the figure below, as a bond approaches maturity the premium (or discount) reduces...

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Accounting

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According to the figure below, as a bond approaches maturity the premium (or discount) reduces to zero. Prove this by calculating the sales price with 7,5 , and 2 years remaining to maturity for the following two bonds. Assume a constant yield to maturity of 8 percent. a. A 10 -year, 10 percent annual coupon bond. b. A 10 -year, 5 percent annual coupon bond. Click on the table icon to view the PVIF table. Click on the table icon to view the PVIFA table a. The sales price, PV, of a 10 -year, 10 percent annual coupon bond, a yield to maturity of 8 percent and with 7 years remaining to maturity is q. (Round to nearest cent.) Data table Data table

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