A 1000 par-value bond with 8% quarterly coupons has payment dates of January 31, April 30, July 31 and October 31. The bond matures on October 31, 2010. On April 30, 2007, the coupon payment of 20 is paid. The bond is sold 45 days later on the settlement date of June 14. The bond is sold to yield 6% convertible quarterly. Find the price plus accrued interest, the accrued interest and the 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
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D4
A 1000 par-value bond with 8% quarterly coupons has payment dates
of January 31, April 30, July 31 and October 31. The bond matures on October 31,
2010. On April 30, 2007, the coupon payment of 20 is paid. The bond is sold 45 days
later on the settlement date of June 14. The bond is sold to yield 6% convertible
quarterly. Find the price plus accrued interest, the accrued interest and the price.
Transcribed Image Text:A 1000 par-value bond with 8% quarterly coupons has payment dates of January 31, April 30, July 31 and October 31. The bond matures on October 31, 2010. On April 30, 2007, the coupon payment of 20 is paid. The bond is sold 45 days later on the settlement date of June 14. The bond is sold to yield 6% convertible quarterly. Find the price plus accrued interest, the accrued interest and the price.
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