Question
A bond with annual coupon rate of 5.10% and price of $1,090 just yesterday paid a coupon. A total of 23 coupons remain to be
A bond with annual coupon rate of 5.10% and price of $1,090 just yesterday paid a coupon. A total of 23 coupons remain to be paid. Suppose you buy the bond at todays price hold it and receie 8 coupons and then sell the bond If at the time you sell the bond its YTM has decreased a total of 50 basis points, find the selling price of the bond. (FYI; 0.01=1%=100 basis points; use semi-annual compounding)
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