Question
Assume today is June 23, 2023 and you have purchased a corporate bond issued by the Tangier Company. The bond matures on December 31 2042,
Assume today is June 23, 2023 and you have purchased a corporate bond issued by the Tangier Company. The bond matures on December 31 2042, bears a coupon rate of 5.6 percent, is redeemable at 100% of par value and has a current YTM of 5.1 percent.
Based on a 30/360 day-count method, the clean price of the bond (rounded to the nearest whole dollar) is
| a. | $1,058 | |
| b. | $1,059 | |
| c. | $1,060 | |
| d. | $1,072
| |
| e. | $1,088 |
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
