Determine the price of bond


Problem:

A semi-annual bond has a face value of $1,000.00, an annual coupon rate of 4.60%, an yield to maturity of 8.12%, makes 2 (semi-annual) coupon payments per year, and 10 periods to maturity (or 5 years to maturity).

Required:

Question: Determine the price of this bond based on the convention and the price of this bond based on the (EAR) convention.

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Determine the price of bond
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