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Problem 2 (Required, 25 marks) We consider a 5-year straight term bond issued today. The bond pays coupon quarterly and the current annual effective yield
Problem 2 (Required, 25 marks) We consider a 5-year straight term bond issued today. The bond pays coupon quarterly and the current annual effective yield rate is i = 7.1859%. You are also given that The current bond price is 2167.529. The clean price of the bond at the end of 15th month is 2130.929. Assuming that the yield rate remains unchanged over these 5 years, find the clean price of the bond at the end of 22nd month
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