Question
A $10,000 bond pays semi-annual coupons at j 2 = 10% every January 5 and July 5. It is purchased on February 5, 2021 to
A $10,000 bond pays semi-annual coupons at j2 = 10% every January 5 and July 5. It is purchased on February 5, 2021 to yield j2 = 11%. The full (or dirty) price of the bond on February 5, 2021 is $9578.38. Using the method that is most commonly used in practice, what would be the price of the bond on the coupon date, January 5, 2021?
- A.
$9488.99
- B.
$9498.67
- C.
$9490.95
- D.
$9493.29
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The Dark Side Of Valuation
Authors: Aswath Damodaran
3rd Edition
0134854101, 9780134854106
