Question
An annual bond that is issued today and the maturity will be in 21th month. Coupon rate is 7% and YTM is also 7%. If
An annual bond that is issued today and the maturity will be in 21th month. Coupon rate is 7% and YTM is also 7%.
If I want to calculate the payments and their times of payment, in the last one, which is the 21th month, the payment would be the sum of face value, which is $1000, and the accrued interest, which is $1000*7%*9/12=$52.5.
Am I correct? I am confused with just the last payment.
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
