A bond has an original maturity of 15 years and a tenor of 12 years, with a coupon rate of 7% and a par value of $ 300,000. The current yield to maturity is 10.9%, and the yield to maturity at the time of issuance was 8.1 %. Additionally, the number of days since the last coupon payment date is 83, and the number of days in the current coupon period is 180. Based on the given information regarding the settlement date, which is 83 days after the last coupon payment date, provide an estimate for the clean price of the bond on this date.
A bond has an original maturity of 15 years and a tenor of 12 years, with a coupon rate of 7% and a par value of $ 300,000. The current yield to maturity is 10.9%, and the yield to maturity at the time of issuance was 8.1 %. Additionally, the number of days since the last coupon payment date is 83, and the number of days in the current coupon period is 180. Based on the given information regarding the settlement date, which is 83 days after the last coupon payment date, provide an estimate for the clean price of the bond on this date.
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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Transcribed Image Text:A bond has an original maturity of 15 years and a tenor of
12 years, with a coupon rate of 7% and a par value of $
300,000. The current yield to maturity is 10.9%, and the
yield to maturity at the time of issuance was 8.1%.
Additionally, the number of days since the last coupon
payment date is 83, and the number of days in the current
coupon period is 180. Based on the given information
regarding the settlement date, which is 83 days after the last
coupon payment date, provide an estimate for the clean
price of the bond on this date.
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