Question
Today is February 15, 2011. What is the price at which you can sell your ABC bond if it is quoted at 105% of its
Today is February 15, 2011. What is the price at which you can sell your ABC bond if it is quoted at 105% of its $1,000 face value? Noting that ABC bond pays interest semi-annually, has a coupon rate of 6%, and matures on January 1, 2020 (assume 365 days per year) (pick the nearest answer)
a. 1,046.22
b. 1,051.00
c. 1,053.78
d. 1,050.00
Show what formula you used, and numbers to solve
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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
