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1. Calculate the Dirty Price and Clean Price for a bond with the following features: -Settlement date is today. -Similar bonds have a yield of

1. Calculate the Dirty Price and Clean Price for a bond with the following features:

-Settlement date is today.

-Similar bonds have a yield of 10%

-Coupon rate is 8% and these are paid semi-annually.

-The next coupon date is 30 June 2021.

-Bond matures on 30 June 2024.

2. What is the maximum yield (%) that would make the bond trade at a premium? (clean price at least R1001).

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Modern Principles of Economics

Authors: Tyler Cowen, Alex Tabarrok

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978-1429278393

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