On September 1, 2012, an investor purchases a $10,000 par T-bond that matures in 20 years. The coupon rate is 8 percent and the investor buys the bond 80 days after the last coupon payment (100 days before the next). The ask yield is 9 percent. The dirty price of the bond is O 8197.08 9313.75 8619.88 9197.08 9257.70
On September 1, 2012, an investor purchases a $10,000 par T-bond that matures in 20 years. The coupon rate is 8 percent and the investor buys the bond 80 days after the last coupon payment (100 days before the next). The ask yield is 9 percent. The dirty price of the bond is O 8197.08 9313.75 8619.88 9197.08 9257.70
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:On September 1, 2012, an investor purchases a $10,000 par T-bond
that matures in 20 years. The coupon rate is 8 percent and the investor
buys the bond 80 days after the last coupon payment (100 days before
the next). The ask yield is 9 percent. The dirty price of the bond is
O 8197.08
9313.75
8619.88
9197.08
9257.70
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