Question
No excel please A 1000 bond is paying coupons at nominal interest rate of 7% payable semiannually. The bond is redeemed at par and matures
No excel please
A 1000 bond is paying coupons at nominal interest rate of 7% payable semiannually. The bond is redeemed at par and matures on November 10, 2029. The nominal yield rate convertible semiannually is quoted as 10.384%. (a) Find the purchase price and the market price of the bond on July 24, 2013 to the nearest 0.001. (b) What is the purchase price of the bond on July 24, 2013 if it is assumed simple interest between coupon dates ? Note that : May 10, 2013 130 (day of the year) ; July 24, 2013 205 (day of the year) ; November 10, 2013 314 (day of the year).
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