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Exercise 7. [5] An n year 1000 par value bond with a coupon rate of 6% convertible semi- annually. We suppose that: i) The bond

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Exercise 7. [5] An n year 1000 par value bond with a coupon rate of 6% convertible semi- annually. We suppose that: i) The bond is redeemable at a par. ii) The bond has a nominal yield rate of i convertible semi-annually. iii) The book value of the bond at the end of year 3 is 3812.13. iv) The book value at the end of year 8 is 3884.27. Calculate i Exercise 7. [5] An n year 1000 par value bond with a coupon rate of 6% convertible semi- annually. We suppose that: i) The bond is redeemable at a par. ii) The bond has a nominal yield rate of i convertible semi-annually. iii) The book value of the bond at the end of year 3 is 3812.13. iv) The book value at the end of year 8 is 3884.27. Calculate

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