Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You purchased a 12-year Treasury bond with a 7 percent coupon rate. The bond’s asked yield is currently 5.5 percent. The settlement of the purchase occurred 20 days after the last coupon payment and there are 160 days before the next. If the bond has a par value of $1,000 and interest is paid semiannually. What is the full price of the bond that you pay to the seller?
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