(Exercise 6.19) A $1000 par value 5% bond with semiannual coupons matures at par on October 15,2015. The bond is purchased on June 28, 2005 to yield the investor (²) = 9%. What is the purchase price (flatprice)? Assume simple interest between bond coupon dates and use an exact day count.ANSWER =$

In the flat price of the bond accrued interest is not included and the simple price is calculated as…

(Exercise 6.19) A $1000 par value 5% bond with semiannual coupons matures at par on October 15, The bond is purchased on June 28, 2005 to yield the investor i(2) = 9%. What is the purchase price (flat Assume simple interest between bond coupon dates and use an exact day count. FR-S

(Exercise 6.19) A $1000 par value 5% bond with semiannual coupons matures at par on October 15, The bond is purchased on June 28, 2005 to yield the investor i(2) = 9%. What is the purchase price (flat Assume simple interest between bond coupon dates and use an exact day count. FR-S

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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(Exercise 6.19) A $1000 par value 5% bond with semiannual coupons matures at par on October 15,
2015. The bond is purchased on June 28, 2005 to yield the investor (²) = 9%. What is the purchase price (flat
price)? Assume simple interest between bond coupon dates and use an exact day count.
ANSWER =$

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