Question
A corporate bond with a face value of $1,000 and a coupon rate of 4.6% pays interest semiannually and has a maturity date of May
A corporate bond with a face value of $1,000 and a coupon rate of 4.6% pays interest semiannually and has a maturity date of May 6, 2026. The trade settles on January 22, 2022. The yield to maturity is 5.8%.
Part 1:
How many days have passed since the last coupon payment? Use Excel's COUPDAYBS() function. Dates must be entered with Excel's DATE() function.
Part 2:
How many days are in the current coupon period? Use Excel's COUPDAYS() function. Dates must be entered with Excel's DATE() function.
Part 3:
What is the accrued interest on the bond (in $)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Part 1 To calculate the number of days that have passed since the last coupon payment we need to use ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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