. A 20-year 100 face value bond, redeemable at par, is offered for sale. The coupon rate...
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A 20-year 100 face value bond, redeemable at par, is offered for sale. The coupon rate is 12% convertible semiannually. Find the purchase price to yield 8% convertible semiannually, if the probability of default in any 6-month period is 1%. Assume that once default occurs, no further payments are received.
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Related Book For 
Theory Of Interest And Life Contingencies With Pension Applications A Problem Solving Approach
ISBN: 978-1566983334
3rd Edition
Authors: Asa Michael M. Parmenter, Ph.d.
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