Subject: Business    / Finance   
Question

The MKS corporation issues a $1000 bond with coupons at j2 = 8% and redeemable at par on 1st Aug 2027.

    how much should be paid for this bond on 1st Feb 2012 to yield j2 = 10%
    If the purchase price was $1050 and the bond is held to maturity determine the overall yield, j2.