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

Two $1000 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% convertible semiannually. The first bond sells for $832.69 and pays coupons at 8.2% convertible semiannually. The second bond pays coupons at 5.3% per half year. What's the price of the second bond?

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