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2. (8 pts) Consider a 1000 par value 3-year bond with (semi-annual) coupons at 8.4% con- vertible semiannually, which will be redeemed at 1050. The
2. (8 pts) Consider a 1000 par value 3-year bond with (semi-annual) coupons at 8.4% con- vertible semiannually, which will be redeemed at 1050. The bond is bought to yield 10% convertible semiannually. Construct the amortization schedule for this bond. 3. (5 pts) Compute the flat price, accrued coupon, and market price 8 months after purchase of the bond described in the previous item. Use all three methods. CS Scanned with CamScanner 2. (8 pts) Consider a 1000 par value 3-year bond with (semi-annual) coupons at 8.4% con- vertible semiannually, which will be redeemed at 1050. The bond is bought to yield 10% convertible semiannually. Construct the amortization schedule for this bond. 3. (5 pts) Compute the flat price, accrued coupon, and market price 8 months after purchase of the bond described in the previous item. Use all three methods. CS Scanned with CamScanner
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