Chapter 06 - Bonds and Other Securities - University of Florida

decides an 8 year bond would be preferable. Current yield rates are 7% convertible semiannually. The investor uses the proceeds from the sale of the 10% bond to purchase a 6% bond with semiannual coupons, maturing at par at the end of 8 years. Find the par value of the 8-year bond. - - - - - - - - - - 6-13 ................
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