Victor Korchnoi bought a bond one month before a semi-annual coupon was due. The face value was $1000 and the coupon rat

[answerhappygod]

Victor Korchnoi bought a bond one month before a semi-annual
coupon was due. The face value was $1000 and the coupon rate
6%. At the time of purchase there were 48 coupons left and the
YTM was 5.2 p.a. compounded semi-annually. Victor kept the
bond for 13 years and 8 months. He then sold it. At time
of sale it was valued at a YTM of 6.6% p.a. compounded
semi-annually. While he held the bond Victor reinvested the coupons
as soon as he received them into a bank account earning interest at
an EAR of 5.8%. Determine a. What was the purchase price of the
bond? b. What was the selling price of the bond? c. At the time of
sale, how much was in his bank account as a result of the
reinvested coupons?] d. What was the HPRR expressed on a per annum
compounded semi-annually basis?