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(C) Consider a RM1,000 par value two-year 8% bond with semi-annual coupons bought to yield 6% convertible semi-annually. Compute the flat price, accrued coupon, and

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(C) Consider a RM1,000 par value two-year 8% bond with semi-annual coupons bought to yield 6% convertible semi-annually. Compute the flat price, accrued coupon, and market price 8 months after the purchase of the bond. Use all three methods, i.e., the theoretical method, the practical method, and the semi-theoretical method. (9 marks) (C) Consider a RM1,000 par value two-year 8% bond with semi-annual coupons bought to yield 6% convertible semi-annually. Compute the flat price, accrued coupon, and market price 8 months after the purchase of the bond. Use all three methods, i.e., the theoretical method, the practical method, and the semi-theoretical method. (9 marks)

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