Bond selling at premium or a discount, Accounting Basics

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Bond selling at premium or a discount

Suppose interest rates for bonds today is 5 percent for an AAA rated bond. Compute the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other factors might affect the value of a bond?

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Accounting Basics: Bond selling at premium or a discount

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Accounting Basics: Bond selling at premium or a discount

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