Question
Liam Investment Co purchases $100,000 par of 20-year Corporate bonds that have a Flat (Clean) price of $97.50 (97.50% of par) for a value of
Liam Investment Co purchases $100,000 par of 20-year Corporate bonds that have a Flat (Clean) price of $97.50 (97.50% of par) for a value of $9,750. Janie's buys this bond in the middle of the coupon period and the bond has accrued $812.50 in accrued interest.
What is the Full (dirty) value of the bond - i.e. how much cash does Janie's Investment company need to pay the seller?
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Financial Management Core Concepts
Authors: Raymond Brooks
3rd Edition
0133866742, 9780133866742
