Question
Consider a 30-year bond, with $1,000 par value, 6% semi-annual coupon bond. Suppose that the maturity of this bond is January 15, 2027, and you
Consider a 30-year bond, with $1,000 par value, 6% semi-annual coupon bond. Suppose that the maturity of this bond is January 15, 2027, and you are valuing the bond for settlement on April 20, 2007. The next coupon is due on July 15, 2007, and you will assume a 30E/360 day count basis. This convention assumes that all months have 30 days and that a year is 360 days.If either the start date or end date is the 31th, then it changes to 30th.
What is the YTM of this bond on the settlement date if the invoice price of the bond on the settlement date is $371.057? Please round your answers to three decimal places (e.g., 0.123 or 12.3%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started