Answer:
the price of the bond using semiannual convention is $411.19
Explanation:
The computation of the price of the bond using semiannual convention is as follows:
= Par value ÷ (1 + rate of interest)^time period
= $1,000 ÷ (1 + 0.06 ÷ 2)^15 × 2
= $1,000 ÷ (1 + 0.03)^30
= $1,000 ÷ 1.03^30
= $411.19
Hence, the price of the bond using semiannual convention is $411.19
The same is relevant
