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6. A 1000 par value 5-year bond with an annual coupon rate of 8.0% compounded semiannually was bought to yield 7.5% convertible semiannually. The bond

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6. A 1000 par value 5-year bond with an annual coupon rate of 8.0% compounded semiannually was bought to yield 7.5% convertible semiannually. The bond will redeem at par value at maturity Determine the amount of premium amortized in the 6th coupon payment? Hint: What is the principal adjustment in the 6th coupon period? (a) 2.00 (b) 2.08 (c) 2.15 (d) 2.25 (e) 2.34

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