Ryan buys a 10-year semi-annual coupon 1000 par value bond to yield 6% convertible semi-annually. Assuming the bond is redeemed at par, the amount of premium amortized in the 6th coupon is 9.75. Calculate the original price of Ryan's bond. 1,093 875 903 1,226 1,024

Ryan buys a 10-year semi-annual coupon 1000 par value bond to yield 6% convertible semi-annually. Assuming the bond is redeemed at par, the amount of premium amortized in the 6th coupon is 9.75. Calculate the original price of Ryan's bond. 1,093 875 903 1,226 1,024

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 13P

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Question

Ryan buys a 10-year semi-annual coupon 1000 par value bond to yield
6% convertible semi-annually. Assuming the bond is redeemed at par,
the amount of premium amortized in the 6th coupon is 9.75. Calculate
the original price of Ryan's bond.
1,093
875
903
1,226
1,024

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