Question: pls calculate manually using formula Question 5 Lina buys a 10-year 1000 par value bond with 6% annual coupons. Lina then allows each coupon payment

pls calculate manually using formula

Question 5 Lina buys a 10-year 1000 par value bond with 6% annual coupons. Lina then allows each coupon payment received, immediately to be put into an account earning interest at an annual effective rate of 7%. At the end of ten years, immediately after Lina receives the final coupon payment and the redemption value at par of the bond, Lina has earned an effective yield of i on her investment in the bond. Determine, (a) The price of the bond. [4 marks] (b) i. [3 marks] Question 5 Lina buys a 10-year 1000 par value bond with 6% annual coupons. Lina then allows each coupon payment received, immediately to be put into an account earning interest at an annual effective rate of 7%. At the end of ten years, immediately after Lina receives the final coupon payment and the redemption value at par of the bond, Lina has earned an effective yield of i on her investment in the bond. Determine, (a) The price of the bond. [4 marks] (b) i. [3 marks]

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