Question: Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date

Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date of the second. Both are bought to yield 11 percent convertible semiannually. The first bond sells for 814.76 dollars and pays coupons at 7.9 percent convertible semiannually. The second bond pays coupons at 4.9 percent per half year.

What is the price of the second bond?

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Heres how to find the price of the second bond 1 Calculate the yield to maturity YTM of the first bo... View full answer

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