Question: fast, will upvote (1 point) A 13-year bond with a face value of 1000 dollars is redeemable at par, pays coupons at 5.8 percent per

fast, will upvote

fast, will upvote (1 point) A 13-year bond with a face value

(1 point) A 13-year bond with a face value of 1000 dollars is redeemable at par, pays coupons at 5.8 percent per 6 months, and has a yield rate of 6.5 percent convertible semiannually. Suppose the book value immediately after the payment of the 8 th coupon is equal to the price of a perpetuity (at the time of the 8th coupon) that will start making annual payments one year after the 8 th coupon. If the perpetuity earns interest at 3.7 percent effective, how large is each perpetuity payment? Answer = dollars

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