Question
A coupon paying bond with semi-annual payments is reported as having an ask price of 117% of its $1,000 face value. The last payment was
A coupon paying bond with semi-annual payments is reported as having an ask price of 117% of its $1,000 face value. The last payment was made 1-month ago (assume 30 days), and the coupon rate is 6%. The interest on the bond accrues on a 360-day basis. What is the invoice price of the trade ticket?
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Handbook Of Hedge Funds
Authors: François-Serge Lhabitant
1st Edition
0470026634, 978-0470026632
