Consider a bond with a 8% coupon and a yield to maturity of 5% maturing in just over 2 Suppose the bond was purchased 114 days after the most recent coupon was paid. If the 182 days in the current coupon period, find (based on $1000 face value) a) The Full Price
Consider a bond with a 8% coupon and a yield to maturity of 5% maturing in just over 2 Suppose the bond was purchased 114 days after the most recent coupon was paid. If the 182 days in the current coupon period, find (based on $1000 face value) a) The Full Price
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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The bond pays coupon semi-annually and matures in just over 29 years. The correct answer of the full price is 1482.9811. Show your work to explain how you get the full price Note: the number of coupon left to paid is NOT 29*2=58 since the bond matures in just over 29 years
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