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5. A $100,000 bond, redeemable at C, pays n semi-annual coupons at 12) = 3.5% and is bought to yield 712) = 4.0% (a) If

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5. A $100,000 bond, redeemable at C, pays n semi-annual coupons at 12) = 3.5% and is bought to yield 712) = 4.0% (a) If the absolute value of the sum of the book value adjustment column for the first 5 years is equal to $1813.49, what is the price of the bond? (4 marks) (b) The book value of the bond after (n-2) coupons have been paid is $101,917.53. What is C? (4 marks) 5. A $100,000 bond, redeemable at C, pays n semi-annual coupons at 12) = 3.5% and is bought to yield 712) = 4.0% (a) If the absolute value of the sum of the book value adjustment column for the first 5 years is equal to $1813.49, what is the price of the bond? (4 marks) (b) The book value of the bond after (n-2) coupons have been paid is $101,917.53. What is C? (4 marks)

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