A bond with $8$ years, to maturity has an annual couoon rate of $5\mathrm{.}1\%$ and paysinterest seminnnelly. Assume that todsy we are $58$ days into the curment $183-$day coupan payment period. and the required rate of return is $5\mathrm{.}7\%.$ What is the flat price that would be quoted by a dealer on thisibond, per $$100$ af par value?

ii Answered

Answer

$96\mathrm{.}24$ inargin oferror$-14.$

Galculate full price, calculate accued interest, then flat price is full price less acerued interest.