10, (2.5 points) An investor purchases a 1,000 bond redeemable at par that pays 8%...
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10, (2.5 points) An investor purchases a 1,000 bond redeemable at par that pays 8% semiannual coupons and matures in 10 years. The bond will yield 7%, convertible semiannually at maturity. If the bond matures in 5 years, X is the redemption value the investor needs to realize a yield of 7%. Note that in both cases the price of the bond is the same. Determine X 103 ) 1042(1048 tp) 1054 E) 1060
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