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A $1000 par value bond with a term of 5 years and a coupon of 6% convertible semiannually is purchased to yield 8% convertible semiannually.

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A $1000 par value bond with a term of 5 years and a coupon of 6% convertible semiannually is purchased to yield 8% convertible semiannually. a) Find the purchase price of the bond. b) One year after purchasing the bond, interest rate increases to 10% convertible semiannually. Determine the market price of the current bond right after the 2nd coupon payment was made

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