Question
It is now October 2011. You are looking to price a bond that matures in April 2014. The bond is $1,000 par value and it
It is now October 2011. You are looking to price a bond that matures in April 2014.
The bond is $1,000 par value and it pays 5% coupon rate with semi-annual coupon payments.
The next coupon payment occurs in 6 months. You go to the Wall Street Journal to find the price of this bond and find that YTM of this bond is 4%.
Can you determine the price of this bond with this information?
If so, calculate the price of the bond. If not, explain why not.
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
8th Edition
0618471421, 9780618471423
