An n-year bond with semiannual coupons has the following characteristics:
i) The par value and redemption value are 2500;
ii)The annual coupon rate is 7% payable semi-annually;
iii)The annual nominal yield to maturity is 8% convertible semiannually; and
iv)The book value immediately after the fourth coupon is 8.44 greater than the book value immediately after the third coupon.
Calculate n.
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