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Question 1 a. A bond that pays interest semiannually is selling for 100% of its $1,000 par value. The bond has a 4% coupon rate
Question 1
a. A bond that pays interest semiannually is selling for 100% of its $1,000 par value. The bond has a 4% coupon rate and paid a coupon 1 month ago. What is this bond's invoice price?
b.A bond has a $1,000 par value,10 years to maturity, a 4.5% coupon, and currently sells for $1,037. The bond pays coupons semiannually. The bond is callable 3 years from today with a call price of $1,020. What is this bond's yield to maturity?
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