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A 3-year bond with a par value of $100, an coupon rate of 5%, and a semi-annual coupon payment was issued on June 22, 2020.
A 3-year bond with a par value of $100, an coupon rate of 5%, and a semi-annual coupon payment was issued on June 22, 2020. Currently, the yield to maturity on this bond is 5% semiannual compound interest. 1.If you buy a share of this bond on June 22, 2020, what is the price? 2. On December 22, 2020, six months later, the yield to maturity on this bond fell to 4.5%. Calculate your holding period return over this period. 3. If you subsequently sell this bond on March 22, 2021, Calculate accrued interest and invoice price. (the yield to maturity on this bond is still 4.5%.)
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