ABC’s semiannual bond has a clean price of $1013. It paid its last coupon of $50 65 days ago. Calculate the accrued interest on the bond. Assume a 180-day semiannual period. Round to the nearest dollar. Don’t include the dollar sign in your answer. Johnston’s bonds are selling for $1,245. They have a 7-year maturity, an annual coupon of $75, a par value of $1,000, and a yield to maturity of 3.5 percent. What is their current yield? Write your answer as a percentage out to two decimal places. Do not include the percentage sign in your answer.
ABC’s semiannual bond has a clean price of $1013. It paid its last coupon of $50 65 days ago. Calculate the accrued interest on the bond. Assume a 180-day semiannual period. Round to the nearest dollar. Don’t include the dollar sign in your answer. Johnston’s bonds are selling for $1,245. They have a 7-year maturity, an annual coupon of $75, a par value of $1,000, and a yield to maturity of 3.5 percent. What is their current yield? Write your answer as a percentage out to two decimal places. Do not include the percentage sign in your answer.
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 13P
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ABC’s semiannual bond has a clean price of $1013. It paid its last coupon of $50 65 days ago. Calculate the accrued interest on the bond. Assume a 180-day semiannual period. Round to the nearest dollar. Don’t include the dollar sign in your answer.
Johnston’s bonds are selling for $1,245. They have a 7-year maturity, an annual coupon of $75, a par value of $1,000, and a yield to maturity of 3.5 percent. What is their current yield?
Write your answer as a percentage out to two decimal places. Do not include the percentage sign in your answer.
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