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Find the price of a $1000 par value 10-year bond with coupons of 8.4% convertible semi-annually, which will be redeemed at 1050. The evaluation rate*
Find the price of a $1000 par value 10-year bond with coupons of 8.4% convertible semi-annually, which will be redeemed at 1050. The evaluation rate* is 10% convertible semi-annually for the first five years and 9% convertible semi-annually for the second five years. (* the evaluation rate is the rate the bond is present-valued at; from a computational standpoint it is equivalent to the yield rate)
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Answer: 943.41
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