You purchased a bond on 1 January 2019. The bond has a face value of $4000. It pays quarterly coupon payments on the 1st day of January, April, July and October at the rate of BBSW + 2.68%. If the BBSW on 1 January 2020 is 1.58% and you sell the bond on 13 March 2020, how much will you receive? (Assume the day count fraction is Actual/365.)

Question 8Answer

a.$4034.55

b.$4033.61

c.$4034.08

d.$4033.15