A 6% bond with a face value of 100 is purchased with semiannual coupons at 110 to yield a nominal rate of 4% convertible semiannually. A similar bond (with the same face value and maturity date) at 3% with semiannual coupons is purchased at P to provide the buyer with the same rate of return. Calculate P.

Answer rating: 100% (QA)

To solve this problem we need to use the concept of yield to maturity YTM and the relationship betwe... View the full answer