2. A $10,000 bond is redeemable at 103. The interest on the book value in the nth (and final) period is $436.21. The book value at the end of n-1 periods is $10,263.79. The absolute value of the book value adjustment in the 1st period is $11.77. Determine (and show all your work): (a) The yield rate (as a nominal rate) - round i to 4 decimal points (or 2 decimals in a % form) (2marks) (b) The semi-annual coupon (2 marks) (c) The purchase price of the bond (2 marks) (d) The total number of coupons (i.e. the term of the bond) (2 marks) Since the answers to (b), (c) and (d) depend on your answer to (a), if you cannot get an answer for (a), then use j2 = 8.10% (note that this rate is not at all related to the answer in (a)).
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