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2. A Bond has a par value of one thousand dollars and its coupon rate is 12% con- vertible every six months will be
2. A Bond has a par value of one thousand dollars and its coupon rate is 12% con- vertible every six months will be redeemed at par in n years. It is priced to yield 10 percent, convertible semi-annually. If the term of the bond is doubled, the price will increase by 50. Calculate the price of the n-year bond.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
