A 15 year $1000 face value coupon bond pays a coupon rate of 3.8% and has a YTM of 4.4%. Coupon payments made by the bond are paid semi-annually (a) What is the current price of the bond? (b) Suppose that it has been 89 days since the last coupon payment. How much accrued interest must the buyer of the bond pay to the seller?
A 15 year $1000 face value coupon bond pays a coupon rate of 3.8% and has a YTM of 4.4%. Coupon payments made by the bond are paid semi-annually (a) What is the current price of the bond? (b) Suppose that it has been 89 days since the last coupon payment. How much accrued interest must the buyer of the bond pay to the seller?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
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