Question: A three - year 1 , 0 0 0 face amount bond pays coupons of X quarterly. It is bought at a price to yield

A three-year 1,000 face amount bond pays coupons of X
quarterly. It is bought at a price to yield an annual nominal rate of 8% convertible quarterly. If the amount of each coupon were doubled, the purchase price would have to increase by 500 for the bond to maintain the same yield rate.
Calculate X
.

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