Question

Asked Mar 9, 2020

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Suppose that today’s date is April 15. A bond with a 10% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.25. If you buy the bond from a dealer today, what price will you pay for it?

Step 1

Today Date = April 15

Coupon rate = 10%

Aski price = 101.25

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