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Anurag buys a 5 year, $1,000 face value bond with a 3% coupon. The bond's issue date is January 1, 2020 and it pays semi-annual
Anurag buys a 5 year, $1,000 face value bond with a 3% coupon. The bond's issue date is January 1, 2020 and it pays semi-annual coupons on January 1 and July 1 each year. Anurag pays $902.17 What is the clean price of the bond on July 17, 2022 (using the linear approximation)? (Hint: start by finding the yield, then find the price on July 1, 2022, then find the dirty price (using the linear approximation, then find the clean price). a. $950.09 b. $951.39 C. $947.92 O d. $957.80 e. $948.78 Certainty : C=1 (Unsure: 67%) C=3(Quite sure: > 80%)
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