Question
Suppose NIO is going to issue a 10-year bond has a coupon rate of 6% and pays coupon semiannually. If the discount rate (yield to
Suppose NIO is going to issue a 10-year bond has a coupon rate of 6% and pays coupon semiannually. If the discount rate (yield to maturity) for a firm like NIO is 8%, then what is the clean bond price? How much an investor need to pay if he bought the bond 27 days after the issue of the bond? How much an investor have to pay if he bought the bond 1/100 of second before the bond matures.
Please give an easy-to-understand explanation on how to do this problem. I do have a financial calculator if you can explain how to plug it into there. Will thumbs up for a correct response. Thank You.
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