Question 4\ A

$1,000

par value bond bearing

((\\\\alpha )/(2))

annual coupons is purchased at

$900

to yield an annual\ effective rate of

\\\\alpha

.\ What is the amount of the write-up in value during the second year?\ *** (alpha = 0.1)

A $1,000 par value bond bearing (2) annual coupons is purchased at $900 to yield an annual effective rate of . What is the amount of the write-up in value during the second year