Question
Andrew buys a bond with a $1,000 face value and a 5% coupon rate. The bond matures in 20 years. The coupons are paid semi-annually
Andrew buys a bond with a $1,000 face value and a 5% coupon rate. The bond matures in 20 years. The coupons are paid semi-annually (2x per year).
Based on the current market price, the YTM is 6%.
a) What is the current market price?
b) What will be price just before the next coupon payment is made?
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Day Trading Strategies And Risk Management
Authors: Richard N. Williams
1st Edition
979-8863610528
