1. An investor purchases a 1; 000 bond redeemable at par that pays 8% semiannual coupons and matures in 10 years. The bond will yield 7% convertible semi-annually to maturity. If the bond is sold in 5 years, the minimum sale price the investor needs to receive in order to realize the same yield is X
2. A bond with a face value of 100; 000 has coupons of 3% per annum payable semi-annually. It will be redeemed at par. It is purchased for a price of 91,825. At this price the yield to maturity is 4% per annum convertible semi-annually.
Calculate the term of the bond.