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.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
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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