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you buy a 7-year 3% coupon bond when 7-year treasuries are 2.5% and the credit spread is 150 bps. the interest is paid semi-annually. what
you buy a 7-year 3% coupon bond when 7-year treasuries are 2.5% and the credit spread is 150 bps. the interest is paid semi-annually. what is the price for the bond that you have purchased? the price for the bond that is purchased is $93.950
Three years later you sell the above bond when 4-year and 7-year treasuries are 2% and 2.25% respectively, and credit spreads are 150 bps. what is the price you received when you sold the bond?
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