Question: Consider a three-year bond, with a $1,000 face value and a 6% coupon rate paid semi-annually, which was bought to yield 10% convertible semi-annually. Find
Consider a three-year bond, with a $1,000 face value and a 6% coupon rate paid semi-annually, which was bought to yield 10% convertible semi-annually. Find the interest earned and the amount for accumulation of discount" during the bond's second half-year (i.e., between the first and second coupon payments) a) 39.65, 9.65 3) b) 42.39, 12.39 c) 45.67, 15.67 d) 52.25, 2225 A 10-year 10% semi-annual coupon bond has a face (and redemption) value of $1,000. Find the price of th bond, assuming an annual effective interest rate of 7%. a) 1189.35 4) b) 1199.38 c) 1222.92 d) 1245.67 e) 1267.32
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