A bond, paying semi-annual coupons of 8% per annum, matures in 18 months time, and has a dirty price of $97.51. What is the bond's yield to maturity, with annual compounding? O 10.07% O9.80% O 18.77% O 13.29%
A bond, paying semi-annual coupons of 8% per annum, matures in 18 months time, and has a dirty price of $97.51. What is the bond's yield to maturity, with annual compounding? O 10.07% O9.80% O 18.77% O 13.29%
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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Dirty price of a bond
Dirty price of a bond is calculated as shown below.
When a bond is traded in between the coupon payments, it has accrued interest. Clean price is the price of a bond without considering its accrued interest.
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