Question
An investor buys a corporate bond with a coupon rate of 7.6%. The transaction is settled on July 5, 2020. The bond makes semiannual coupon
An investor buys a corporate bond with a coupon rate of 7.6%. The transaction is settled on July 5, 2020. The bond makes semiannual coupon payments on April 28 and October 28 each year and matures on April 28, 2026. Assume the 30/360 day-count convention and $100 par value. The yield to maturity of the bond is 6.3%. Keep four decimal places for all calculations. 1) (7 points) Calculate the dirty (full) price of this bond on the settlement day. $Answer 2) (4 points) Calculate the accrued interest of this bond on the settlement day. $Answer 3) (2 points) Calculate the clean (flat) price of this bond on the settlement day. $Answer
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