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Answer C & D using the Bond information below. Thank You! c. Calculate the accrued interest on the bond. d. What are the dirty and
Answer C & D using the Bond information below. Thank You!
c. Calculate the accrued interest on the bond. d. What are the dirty and clean prices of the bond? 1. a. Price a 20-year, 6% coupon, $1000 par value U.S. Treasury bond that yields 7%. Rate = 7% nPer = 20 PMT = $1000 * 6% $60 FV = $1000 PV(7%,20,-60,-1000) $894.06 b. Suppose that the next coupon will be paid 88 days from today and that there are 182 days in the coupon period. What is the price of the bond? Accrued interest: $1000 * .06/2* (88/182) $14.51 Price of Bond: $894.06+ $14.51 $908.57|| c. Calculate the accrued interest on the bond. d. What are the dirty and clean prices of the bond? 1. a. Price a 20-year, 6% coupon, $1000 par value U.S. Treasury bond that yields 7%. Rate = 7% nPer = 20 PMT = $1000 * 6% $60 FV = $1000 PV(7%,20,-60,-1000) $894.06 b. Suppose that the next coupon will be paid 88 days from today and that there are 182 days in the coupon period. What is the price of the bond? Accrued interest: $1000 * .06/2* (88/182) $14.51 Price of Bond: $894.06+ $14.51 $908.57||Step by Step Solution
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