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Q1. A 5000 par-value bond with semiannual coupons and r = .03 has a yield rate of 5%, convertible semiannualy. Find the book value of
Q1. A 5000 par-value bond with semiannual coupons and r = .03 has a yield rate of 5%, convertible semiannualy. Find the book value of this bond one year before the redemption date.
Q2. A 1000 par-value 10-year bond with semiannual coupons at 8% convertible semiannualy is bought to yield 9% convertible semiannualy. Find the total of the interest column in the bond amortization schedule.
So answer to Q1 is 5048.19, and answer to Q2 is 865.04 - Need to know how to get to these solutions.
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