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Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date
Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date of the second. Both are bought to yield 11.1 percent convertible semiannually. The first bond sells for 826.35 dollars and pays coupons at 8 precent convertible semiannually. The second bond pays coupons at 4.8 percent per half year. What is the price of the second bond?
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