(that is, 110 days since the Feb. 15 coupon). What is its flat price (or clean price) per $ 100 of par value on June 5, 2020 if its yield to maturity is 4.6% ? Carry intermediate calcs. to four decimals. Answer to two decimals.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 5P
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A 5.89% semiannual-pay corporate bond matures 15 August
2028 and makes coupon payments on 15 February and 15
August. The bond uses the 30/360 day-count convention for
accrued interest. The bond is priced for sale on June 5, 2020
(that is, 110 days since the Feb. 15 coupon). What is its flat
price (or clean price) per $ 100 of par value on June 5, 2020 if
its yield to maturity is 4.6% ? Carry intermediate calcs. to four
decimals. Answer to two decimals.
Transcribed Image Text:A 5.89% semiannual-pay corporate bond matures 15 August 2028 and makes coupon payments on 15 February and 15 August. The bond uses the 30/360 day-count convention for accrued interest. The bond is priced for sale on June 5, 2020 (that is, 110 days since the Feb. 15 coupon). What is its flat price (or clean price) per $ 100 of par value on June 5, 2020 if its yield to maturity is 4.6% ? Carry intermediate calcs. to four decimals. Answer to two decimals.
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