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You buy a $1,000 bond paying annual coupons at a rate of 8%. The bond has 18 years left until maturity. The bond makes coupon
You buy a $1,000 bond paying annual coupons at a rate of 8%. The bond has 18 years left until maturity. The bond makes coupon payments on October 8th. The yield on the bond was 6%. You buy the bond on March 4th, 2019. Calculate the dirty price of the bond. Hint: Calculate the clean price (the price on the previous coupon date) and the accrued interest.
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