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An n-year $10001000 par value bond with 3.723.72% annual coupons is purchased at a price to yield an annual effective rule of ii. You are
An n-year $10001000 par value bond with 3.723.72% annual coupons is purchased at a price to yield an annual effective rule of ii. You are given: (i) If the annual coupon rate had been 6.726.72% instead of 3.723.72%, the price of the bond would have increased by $446446. (ii) At the time of purchase, the present value of all the coupon payments is equal to the present value of the bond's redemption value of $10001000. Calculate ii.
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