Question
You buy a Treasury bond on Feb 4, 2019. The bond last paid a coupon on Dec 31, 2018, and always pays a coupon on
You buy a Treasury bond on Feb 4, 2019. The bond last paid a coupon on Dec 31, 2018, and always pays a coupon on the last day of the month when it is due. The bond matures on Dec 31, 2028, has par value of $1,000, 2% coupon paid semi-annually, and 3% YTM. Assume that the bond's day-count convention is the standard for Treasuries. And assume the market discount rate equals to YTM.
What is the full price of this bond?
Round your answer to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Student Problem Manual To Accompany Essentials Of Corporate Finance
Authors: Stephen A. Ross
2nd Edition
0256261997, 9780256261998
