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Problem 5. You are given the following information on a bond. (i) Par value is $1,000 (ii) Redemption value is $1,000 (iii) Coupon rate is

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Problem 5. You are given the following information on a bond. (i) Par value is $1,000 (ii) Redemption value is $1,000 (iii) Coupon rate is 12%, convertible semi-annually (iv) The bond is priced to yield 10%, convertible semi-annually The bond has a term of n years. If the term of the bond is doubled, the price will increase by 50. Calculate the price of the n-year bond

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