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  3. 1. you have decided to invest in two bonds. bond x

1. You have decided to invest in two bonds. Bond X is an n-year bond...

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Accounting

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1. You have decided to invest in two bonds. Bond X is an n-year bond with semiannual coupons, while bond Y is an accumulation bond redeemable in years. The desired yield rate is the same for both bonds. You also have the following information: Bond X (i) Par value is 1000 (ii) The ratio of the semiannual bond rate to the desired semiannual yield rate, (, is 1.03125. (iii) The present value of the redemption value is 381.50. Bond Y (i) Redemption value is the same as the redemption value of bond X. (ii) Price to yield an effective rate i per half year is 647.80. What is the price of bond X? a. 1055 b. 1072 C. 1019 O O d. 1050 e. 1029

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