Question
A $1000 bond with 3% semiannual coupons matures at par on July 15, 2026. Coupon dates are January 15 and July 15. Tamara purchased this
A $1000 bond with 3% semiannual coupons matures at par on July 15, 2026. Coupon dates are January 15 and July 15. Tamara purchased this bond on May 22, 2014 to yield a nominal rate i(2)=6%.
Find the purchase price assuming simple interest rate between coupon dates and using the 30360 method.
Possible Answers
A
754.24
B
754.34
C
754.44
D
754.54
E
754.64
A $1000 bond with 3% semiannual coupons matures at par on July 15, 2026. Coupon dates are January 15 and July 15. Tamara purchased this bond on May 22, 2014 to yield a nominal rate i(2)=6%.
Find the purchase price assuming simple interest rate between coupon dates and using the 30360 method.
Possible Answers
A
754.24
B
754.34
C
754.44
D
754.54
E
754.64
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Derivatives Markets
Authors: Rober L. Macdonald
4th edition
321543084, 978-0321543080
