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Marge has a five year $1,000,000 face value bond with 6% coupons convertible semiannually. fiona buys a 10-year bond with face amount $X, 6% coupons convertible semiannually. both bonds are redeemable at par. Marge and Fiona buy their bonds priced to yield 4% compounded semiannually. They then sell them to an investor at a price which will yield the investor 2% compounded semiannually. Fiona earns the same amount of profit on the transaction as does Marge. Find X.

Financial Management, Finance

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