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a. A $1,000 bond with 8% semi-annual coupons is being sold 3 years and 1.5 months...

a. A $1,000 bond with 8% semi-annual coupons is being sold 3 years and 1.5 months before the bond matures. If held to maturity, the purchase will yield 6% convertible semi-annually to the buyer. Determine the flat price, accrued coupon, and market price.

b. Rework part a. assuming the bond pays coupons on March 1 and September 1, matures on September 1, and is being sold on July 15 (3 years and 1.5 months prior to maturity). Use the 30/360 day-count convention.

c. Rework part b. using the actual/actual day-count convention.

Can someone please explain this step by step?

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