Find the number of years to maturity

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Question - A bond with face value $1000, redemption value $2000, and semi-annual coupons at j2 = 16% is purchased to yield the investment rate to maturity j2 = 8%. Is it purchased at a premium or at a discount? Find the purchase price.

(b) A different bond with face value $1000, redeemable at 110 with semi-annual coupons at j2 = 9% is purchased for $792.96 to yield j2 = 12%. Find the number of years to maturity?

Reference no: EM132609831

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