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1) You buy a 5 year bond with par value $1000 and 9 % semiannual coupons.The redemption value of the bond at the end of
1) You buy a 5 year bond with par value $1000 and 9 % semiannual coupons.The redemption value of the bond at the end of 5 years is 1,100.Calculate the purchase price to yield 6% convertible semiannually,rounded to the next ten dollars .
2) For the bond in question 1 what is the book value of the bond at the end of the second year?
3) You buy a five year bond to yield 8% per annum.The amortization of premium in the 2nd year was $2.94.What will the amortization be in the 4th year?
4) For the bond in question 3 what was the premium at purchase?
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