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3 i. A 7% 8year bond with a par value of $100 is currently selling for $106.36. The first par call date is five years
3 i. A 7% 8year bond with a par value of $100 is currently selling for $106.36. The first par call date is five years from now. Prove that the yield to first par call on a bond equivalent basis is 5.53%. ii. An investor bought a $1000 par value bond on July 16,2006 , with coupon payments due on July 2 and January 2 . The coupon rate is 30%. Calculate the accrued interest as at July 16 . Assume a 30//360 day count convention. iii. Assume you bought a $1000 par value Government T-Bond on July 16, 2018. The TBond matures on January 2, 2024 and has a coupon rate of 10% payable semiannually and a yield
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