Question
On Aug. 22, 2017 Amazon.com issued a semiannual bond with coupon rate of 3.15% and maturity date of Aug. 22, 2027. The bond pays coupon
On Aug. 22, 2017 Amazon.com issued a semiannual bond with coupon rate of 3.15% and maturity date of Aug. 22, 2027. The bond pays coupon on Feb. 22 and Aug. 22 every year. The current bond YTM is 0.96%.
Please find bond accrued interest, full price and flat price on Oct. 9, 2020. Please specify which price is the quoted price you receive from the dealer. Assume face value is $1000. Please show your detail calculation. If you use financial calculator, please list the input and output numbers. (6 points)
If the market rate does not change in the next month, without calculation, please explain how the quoted price of this bond will change in the next month. (2 points)
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