Bitk - Flat price, Bine - Market price, Frk - Accrued coupon + Theoretical Method BVEK = BV/(1+i)k, Frk = = Fr [(1 + i)k 1] i (1 + i)k 1] BV (1 + i)k Fr ,BV hk = t+ Practical Method BV fk = BV/(1+ki), Frk = k Fr, Bvik t+ BV (1 + ki) k. Fr Semi-theoretical BV-k = BV(1 + i)k, Frk = k Fr, BV fk = BV (1 + i)k k Fr = t+ Assignment A bond has a face value of 100 and is redeemable at face value with a term of 10 years. The bond has a 10% semiannual coupon rate, a yield rate of 9% convertible semiannually. Find the price halfway between the ninth and tenth coupon payment. F = C = 100, r = 5.0%, Fr = 5, g = 5.0%,i = 4.5% Find the following, book value immediately after the ninth and tenth coupon payments and the flat price, market price and accrued coupon under the three estimation techniques halfway between the 9th and 10th coupons. Book value after 9th coupon: Book value after 10th coupon: Flat price Market price Accrued coupon Between Coupon Estimation Technique Theoretical Practical Semi-theoretical