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Two n-year 1000 par value bonds are purchased. One bond has annual coupons of size 25 and the other has annual coupons of size 35.
Two n-year 1000 par value bonds are purchased. One bond has annual coupons of size 25 and the other has annual coupons of size 35. Each is purchased to yield 6.5% per year, effective. The bond with annual coupons of size 35 is purchased for 121.98 more than the bond with annual coupons of size 25. Calculate the price of the bond with annual coupons of size 25. Give your answer rounded to the nearest whole number
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