Market price based on theoretical method less the market


A 10 year bond is redeemable at par of $100,000. The bond has semi-annual coupons of $4,000. The bond is bought to yield 6% convertible semi-annually. Two years and 7 months after purchase, calculate the market price based on the theoretical method less the market price based on the semi-theoretical method.

Theoretical Method Market Price:

(Round answer to nearest dollar)

Semi-Theoretical Method Market Price:

(Round answer to nearest dollar)

Market Price based on theoretical method less the Market Price based on the semi-theoretical method:

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Financial Management: Market price based on theoretical method less the market
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