What is the price of the second bond

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Reference no: EM133616025

Problem: Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemption date of the second. Both are bought to yield 11 percent convertible semiannually. The first bond sells for 814.76 dollars and pays coupons at 7.9 percent convertible semiannually. The second bond pays coupons at 4.9 percent per half year. What is the price of the second bond?

Reference no: EM133616025

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