Question
A(n) 20-year bond has a coupon of 10% and is priced to yield 8%. Calculate the price per $1,000 par value using semi-annual compounding. If
A(n) 20-year bond has a coupon of 10% and is priced to yield 8%. Calculate the price per $1,000 par value using semi-annual compounding. If an investor purchases this bond two months before a scheduled coupon payment, how much accrued interest must be paid to the seller?
The price of the bond, PV, is $enter your response here. (Round to the nearest cent.)
If an investor purchases this bond two months before a scheduled coupon payment, the amount of accrued interest to be paid to the seller is $enter your response here. (Round to the nearest cent.)
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