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NOT 937!!!! QUESTION 5 A bond with a par value of 1000 and nominal annual coupon rate of 6% paid semiannually (i.e. 3% at the
NOT 937!!!!
QUESTION 5 A bond with a par value of 1000 and nominal annual coupon rate of 6% paid semiannually (i.e. 3% at the end of each six-month period) is redeemable for 1100. You are given the following information: The bond is purchased at P to yield 8% convertible semiannually. The absolute difference between the book value after the 15th coupon and the book-value after the 16th coupon is 3.54. Calculate P. Give your answer rounded to the nearest whole number (i.e.x)Step by Step Solution
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