Question
American Can Company issued a 30-year, semiannual coupon bond with a maturity date of 11/15/2045. The PAR value of the bond is $1000, the coupon
American Can Company issued a 30-year, semiannual coupon bond with a maturity date of 11/15/2045. The PAR value of the bond is $1000, the coupon rate is 5.00 percent and the current yield to maturity is 4.75 percent. Todays date is Monday 3/7/2017 and you would like to determine the clean price and accrued interest on this bond assuming you execute a trade today. Assume the settlement date is T+2. Using the bond spreadsheet on your financial calculator, what is the clean price and accrued interest as a percent of PAR? Multiple Choice
103.887, 1.583
103.887, 1.555
102.588, 0.778
102.587, 0.799
103.887, 1.588
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