Problem:
A semi-annual bond has a face value of $1,000.00, an annual coupon rate of 4.60%, an yield to maturity of 8.12%, makes 2 (semi-annual) coupon payments per year, and 10 periods to maturity (or 5 years to maturity).
Required:
Question: Determine the price of this bond based on the convention and the price of this bond based on the (EAR) convention.
Note: Please explain comprehensively and give step by step solution.