A 10 year bond of 1000 face amount with semiannual coupons


A 10 year bond of 1000 face amount with semiannual coupons, redeemable at par, is bought at a discount to yield 12 % convertible semiannually. If the book value six months before the redemption date is 985.85, find the total amount of discount in the original purchase price.

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Financial Management: A 10 year bond of 1000 face amount with semiannual coupons
Reference No:- TGS01416566

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