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Two bonds are both redeemable at their par value of $100 in t years. Bond A has 3.5% semiannual coupons and costs $88. Bond B
Two bonds are both redeemable at their par value of $100 in t years. Bond A has 3.5% semiannual coupons and costs $88. Bond B has 4% semiannual coupons and costs $92. The bonds were purchased to produce the same yield rate.What is the yield rate per annum convertible semiannually? (You might get an effectivesemiannual rate. Dont forget to double your result.)
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