You are given the following information about two bonds, Bond A and Bond B: i) Each...
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You are given the following information about two bonds, Bond A and Bond B: i) Each bond is a 10-year bond with semiannual coupons redeemable at its par value of 10,000, and is bought to yield an annual nominal interest rate of i, convertible semiannually. ii) Bond A has an annual coupon rate of (i + 0.04), paid semiannually. iii) Bond B has an annual coupon rate of (i-0.04), paid semiannually. iv) The price of Bond A is 5,341.12 greater than the price of Bond B. Calculate i. You are given the following information about two bonds, Bond A and Bond B: i) Each bond is a 10-year bond with semiannual coupons redeemable at its par value of 10,000, and is bought to yield an annual nominal interest rate of i, convertible semiannually. ii) Bond A has an annual coupon rate of (i + 0.04), paid semiannually. iii) Bond B has an annual coupon rate of (i-0.04), paid semiannually. iv) The price of Bond A is 5,341.12 greater than the price of Bond B. Calculate i.
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