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 Consider a bond with a 8% coupon and a yield to maturity of 5% maturing in just over 29 years.Suppose the bond was purchased 114 days after the most recent coupon was paid. If there are182 days in the current coupon period, find (based on $1000 face value)(a) The Full Price

Price of a bond is the sum of the flat price of the bond plus accrued interest on the bond and that…

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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

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

Consider a bond with a 8% coupon and a yield to maturity of 5% maturing in just over 29 years.
Suppose the bond was purchased 114 days after the most recent coupon was paid. If there are
182 days in the current coupon period, find (based on $1000 face value)
(a) The Full Price

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