$1000 bond with 12% semiannual coupons, with n years of maturity, sells at $862.877 with a 15% yield to maturity (YTM). Find the price of a $1000 bond with a 10% semiannual coupon with a maturity of 2n years and a YTM of 15% (Assume semiannual compounding)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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A $1000 bond with 12% semiannual coupons, with n years of maturity, sells at $862.877 with a 15% yield to maturity (YTM). Find the price of a $1000 bond with a 10% semiannual coupon with a maturity of 2n years and a YTM of 15% (Assume semiannual compounding) 

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