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The annual percentage rate (APR) is 10% compounded semi-annually. You are considering purchasing a US Treasury bond that has a face value of $1000, a
The annual percentage rate (APR) is 10% compounded semi-annually. You are considering purchasing a US Treasury bond that has a face value of $1000, a 4% coupon (nominal rate), and matures in 10 years. Coupons are paid semi-annually and the next coupon payment is exactly six months away.
What is the price of the bond if the next coupon payment is in 3 months, and the bond has 9 years and 9 months to maturity? note: coupons are still paid semi-annually
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