Reference no: EM131905304
1. A. Yahoo bond pays coupon interest 2.75% semi-annually on face value $100. Bond is sold on November 14, 2017. Bond matures in April 14, 2035. Bond is priced to yield the investor 2.80%.
How much is the bond’s price (clean)?
How much is the bond’s accrued interest?
How much is the bond’s dirty price?
B. A US Treasury note with interest rate 3.10%/ matures on Aug 15, 2020 pays semi-annually on face value $100. Bond is purchased on December 3, 2018. Bond is priced to yield the investor 3.20%.
How much is the bond’s price (clean)?
How much is the bond’s accrued interest?
How much is the bond’s dirty price?
Intrerest payment date is not mentioned, the question should be solved without knowing that.