Calculate the market price based on semi-theoretical method

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1. A 10 year bond is redeemable at par of 100,000. The bond has semi-annual coupons of 4000. The bond is bought to yield 6% convertible semi-annually. Four months after purchase, calculate the market price based on the semi-theoretical method.

2. A 10-year bond with semi-annual coupons is bought at a discount to yield 9% convertible semian-nually. If the amount for accumulation of discount in the next-to-last coupon is 8, and the total amount for accumulation of discount during the first four years in the bond amortization schedule.

Reference no: EM131888281

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