Question $11$

A $5-$year $$1,000$ par value bond has a coupon rate of $$ convertible semiannually. It is callable at

par anytime after year $3$ and till the end of year $5.$ An investor wishes to buy the bond to yield $$

convertible semiannually.

Determine the purchase price of the bond.

$****($alpha $=0\mathrm{.}1$ ; beta $=0\mathrm{.}048)***$