Business, 28.06.2021 15:30 24chrim

You have decided to invest in two bonds. Bond X is an n-year bonod with semiannual coupons, while bond Y is zero-coupon bond, which is re- deemable in 2 years. The desired yield rate is the same for both bonds. You also have the following information: Bond X:
Par value is 1000.
The ratio of the semi-annual bond rate to the desired semi-annual yield rate, that is is r/i 1.03125.
b. The present value of the redemption amount is 381.50.

Bond Y:
Redemption value is the same as that of bond X.
Price to yield is 647.80.

What is the price of bond X?

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You have decided to invest in two bonds. Bond X is an n-year bonod with semiannual coupons, while bo...

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