What is its price today

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1. Consider a bond with a face value of $ 100 at par, a coupon rate of 6% convertible quarterly, which is redeemed within 5 years. What is its price today, if the rate of return is 7% the first 2 years and 9% the last 3, both convertible quarterly?

2. Consider the price of a redeemable bond with a face value of $ 100 with a coupon rate of 4% convertible quarterly with a redemption value of $ 115 on any coupon date within the next 3 years and of $ 120 as a redemption value for the next 4 years, and a 6% rate of return, convertible quarterly. What should its price be?

3. Consider a bond with a face value of $ 100 at par, a coupon rate of 2% convertible semi-annually, which is redeemed within 6 years. What is its price today, if the rate of return is 5% convertible semi-annually?

Reference no: EM132982885

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