A 6.44% bond makes coupon payments on June 15 and December 15 and is trading with a yield-to-maturity of 4.45%. The bond is purchased and will settle on August 21 when there will be four coupons remaining until maturity. The full price of the bond using 30/360 method (30 days per month, 360 days a year) is closest to A. $1,027.95. B. $1,049.81. C. $1,068.91. D. $1,104.45.
A 6.44% bond makes coupon payments on June 15 and December 15 and is trading with a yield-to-maturity of 4.45%. The bond is purchased and will settle on August 21 when there will be four coupons remaining until maturity. The full price of the bond using 30/360 method (30 days per month, 360 days a year) is closest to A. $1,027.95. B. $1,049.81. C. $1,068.91. D. $1,104.45.
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 10PROB
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A 6.44% bond makes coupon payments on June 15 and December 15 and is trading with a yield-to-maturity of 4.45%. The bond is purchased and will settle on August 21 when there will be four coupons remaining until maturity. The full price of the bond using 30/360 method (30 days per month, 360 days a year) is closest to
A.
$1,027.95.
B.
$1,049.81.
C.
$1,068.91.
D.
$1,104.45.
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