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Assume that it is February 15, 2013. Consider a 30-year US Treasury bond that was originally issued on February 15, 1985. The bond has a
- Assume that it is February 15, 2013. Consider a 30-year US Treasury bond that was originally issued on February 15, 1985. The bond has a coupon rate of 11.25% and coupons are paid semi-annually. The bond matures on February 15, 2015. The yield to maturity is 0.633%. The bonds face value is $1,000. Using the PVA formula, what is the current price of the bond? Is the bond priced at a premium, at a discount, or at par? And, why? Explain. Begin with the general formula. Show all your work, including back up calculations, to receive full credit.
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
