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Two government bonds shown in the table below make semi-annual coupon payments on June 30 and December 31 of each year. The Wall Street Journal
Two government bonds shown in the table below make semi-annual coupon payments on June 30 and December 31 of each year. The Wall Street Journal reports the quotes on 14 January 2021. If you want to choose one bond to invest and hold it until maturity, which one is the better investment and what is its invoice price? Assume the coupon period has 182 days. BID Bond A Bond B MATURITY 12/31/2023 12/31/2023 COUPON 2.2500 2.6250 106.0020 107.0320 ASKED 106.0060 107.0360 ASKED YIELD (%) 0.2140 0.2190 O Bond A, $106.0885 O Bond A, $106.0925 O Bond B, $107.1330 O Bond B, $107.1370
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