Question
A bond with a coupon rate of 2% and a face value of $100. Coupons are paid semi-annually. Suppose there are 32 days to the
A bond with a coupon rate of 2% and a face value of $100. Coupons are paid semi-annually. Suppose there are 32 days to the next coupon payment date. If a bond dealer quotes you a price of 96.4 today, then what is the price you would have to pay to purchase this bond today?
Assume a 30/360 day-count convention, and semi-annual compounding.
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
