Question
8% seminannual coupon corp. bond which matures on Feb 14th 2025, is purchased for settlement on April 15th 2014. The yld to maturity is 6.333%
8% seminannual coupon corp. bond which matures on Feb 14th 2025, is purchased for settlement on April 15th 2014. The yld to maturity is 6.333% quoted on a street convention semiannual bond basis (APR2). Accrued interest = 30/360 day count convention.
(a) What is the flat (clean) price of the bond on the SDT? (use the BA II Plus BOND spreadsheet)
(b) What is the accrued interest on the SDT? (use the BA II Plus BOND spreadsheet)
(c) How many days are there (T) in the current coupon period?
(d) How many days are there (t) between the last coupon date and the SDT?
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