Question: Question 5 Mark purchases a bond. A 1000 par value two-year bond with semiannual coupons at a rate of 8% convertible semiannually, is bought to

Question 5 Mark purchases a bond. A 1000 par value two-year bond with semiannual coupons at a rate of 8% convertible semiannually, is bought to yield 6% convertible semiannually. The initial price of the bond was 1037.17. Then, m months after purchase, before a coupon is paid, Mark decides to sell the bond. Using the semi-theoretical method, the full price of the bond at this time is 1063.04. Using the semi-theoretical method, what would be the book value of the bond at this time (m months after purchase)? (a) 1229.7 (b) 1179.7 (c) 1129.7 (d) 1079.7 (e) 1029.7

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