6.15 The following shows the information of an investment-grade bond when it was issued in 2002. Type of Bond Corporate bond Issue Date 28-Oct-02 Maturity Date 28-Oct-12 Face Value $1,000 Coupon Rate 6.8% payable semiannually Yield Rate 7.4% convertible semiannually The bond is redeemable at par and coupons are payable on 28 October and 28 April every year. An investor purchased the bond on 28 October 2007 immediately after the coupon was paid at a purchase price of $967.50 under the prevailing rate, and sold the bond on 30 March 2008. Assuming that the market interest rate is constant in the holding period, calculate the bond's dirty price.
6.15 The following shows the information of an investment-grade bond when it was issued in 2002. Type of Bond Corporate bond Issue Date 28-Oct-02 Maturity Date 28-Oct-12 Face Value $1,000 Coupon Rate 6.8% payable semiannually Yield Rate 7.4% convertible semiannually The bond is redeemable at par and coupons are payable on 28 October and 28 April every year. An investor purchased the bond on 28 October 2007 immediately after the coupon was paid at a purchase price of $967.50 under the prevailing rate, and sold the bond on 30 March 2008. Assuming that the market interest rate is constant in the holding period, calculate the bond's dirty price.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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6.15 The following shows the information of an investment-grade bond when it was issued in 2002.
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The bond is redeemable at par and coupons are payable on 28 October and 28 April every year. An investor purchased the bond on 28 October 2007 immediately after the coupon was paid at a purchase price of $967.50 under the prevailing rate, and sold the bond on 30 March 2008. Assuming that the market interest rate is constant in the holding period, calculate the
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