Find the price of the n-year bond


Problem:

An n-year $1000 par value bond matures at par and has a coupon rate of 12% convertible semiannually. It is bought at a yield rate of 10% convertible semiannually.

Required:

Question: If the term of the bond is doubled, the price will increase by $50. Find the price of the n-year bond.

Note: Please show how to work it out.

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Finance Basics: Find the price of the n-year bond
Reference No:- TGS0881457

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