Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A U . S . Treasury bond pays a 8 % coupon on February 1 7 and August 1 7 . How much interest accrues

A U.S. Treasury bond pays a 8% coupon on February 17 and August 17. How much interest accrues per $100 of principal to the bond holder between August 17,2011 and November 9,2011? How would your answer be different if it were a corporate bond?
If it is a treasury bond
There are
calendar days between August 17,2011 and November 9,2011.
There are
calendar days between August 17,2011 and February 17,2012.
The interest earned per $100 of principal is therefore $
.(Please round your answer to FOUR decimal places)
If it is a corporate bond
There are
calendar days between August 17,2011 and November 9,2011.
There are
calendar days between August 17,2011 and February 17,2012.
The interest earned per $100 of principal is therefore $
.(Please round your answer to FOUR decimal places) PLEASE MAKE SURE IT IS CORRECT WITH WORK !

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance for Non Financial Managers

Authors: Pierre Bergeron

7th edition

176530835, 978-0176530839

More Books

Students also viewed these Finance questions

Question

Factor completely. p(p + 2) + p(p + 2) - 6(p + 2)

Answered: 1 week ago

Question

=+b) Are the conditions for ANOVA met? Why or why not?

Answered: 1 week ago

Question

Gas prices 2016, part

Answered: 1 week ago