Question
On July 29, Joy Brill purchased four GMC 3 1/2s20 bonds at 88. Interesst was payable March 1 and September 1. Included in Joy's cost
On July 29, Joy Brill purchased four GMC 3 1/2s20 bonds at 88. Interesst was payable March 1 and September 1. Included in Joy's cost was accrued interest for 150 days. a. What was the total purchase cost? b. What was the average annual yield? Do not consider accrued interest when calculating this rate of yield.
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
