1) -A 30-year bond is purchased to yield 4% convertible semi-annually. -It has a par value of 1,000 and a redemption value of 900. -It has a coupon rate of 3% convertible semi-annually. b) Calculate the book value of the bond just after the 20th coupon is paid. What % of the bond's 'discount' has been amortized by this time? (6 points) c) The market value of the bond just after the 20th coupon is paid is based on a higher yield rate of 5.5% convertible semi-annually (since market interest rates have increased since the bond's inception). Without doing any calculations, would you expect the market value of the bond (i.e., the actual sale price just after the 20th coupon is paid) to be higher or lower than the book value? Why? (4 points) 1) -A 30-year bond is purchased to yield 4% convertible semi-annually. -It has a par value of 1,000 and a redemption value of 900. -It has a coupon rate of 3% convertible semi-annually. b) Calculate the book value of the bond just after the 20th coupon is paid. What % of the bond's 'discount' has been amortized by this time? (6 points) c) The market value of the bond just after the 20th coupon is paid is based on a higher yield rate of 5.5% convertible semi-annually (since market interest rates have increased since the bond's inception). Without doing any calculations, would you expect the market value of the bond (i.e., the actual sale price just after the 20th coupon is paid) to be higher or lower than the book value? Why? (4 points)