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1. A three-year bond has face value $10,000 with coupons at 8% convertible semiannually. (a) Suppose the redemption value is $9000, and the bond is

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1. A three-year bond has face value $10,000 with coupons at 8% convertible semiannually. (a) Suppose the redemption value is $9000, and the bond is bought to yield 9% convertible semi-annually. Find the purchase price. (b) Suppose the redemption value is $9000, and the bond is bought to yield 9% convertible semi-annually. Find either the amount of premium or the amount of discount, whichever is appropriate. (c) Suppose the redemption value is C, and the bond is bought to yield 9% convertible semi- annually. Find the value of C for which the bond is not sold at either a premium or a discount. (d) Suppose the redemption value is C, and the bond is bought to yield 9% convertible semi- annually. Find the value of C for which the price is equal to the face value. (e) Suppose the redemption value is $9000, and the bond is bought to yield 7% convertible semi-annually. Find the purchase price. (f) Suppose the redemption value is $9000, and the bond is bought to yield 7% convertible semi-annually. Find either the amount of premium or the amount of discount, whichever is appropriate. (g) Suppose the redemption value is C, and the bond is bought to yield 7% convertible semi- annually. Find the value of C for which the bond is not sold at either a premium or a discount. (h) Suppose the redemption value is C, and the bond is bought to yield 7% convertible semi- annually. Find the value of C for which the price is equal to the face value. (i) Suppose the redemption value is $11000, and the bond is bought to yield 7% convertible semi-annually. Complete the construction of the bond amortization table: Interest Earned. Principal Adjustment Book Value Period Coupon

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