An n-year bond with semiannual coupons has characteristics

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Reference no: EM131537086

An n-year bond with semiannual coupons has the following characteristics:

i) The par value and redemption value are 2500;

ii) The annual coupon rate is 7% payable semi-annually;

iii) The annual nominal yield to maturity is 8% convertible semiannually; and

iv) The book value immediately after the fourth coupon is 8.44 greater than the book value immediately after the third coupon.

Calculate n.

Reference no: EM131537086

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