Maximum price that you are willing to pay for the bond

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You are considering buying a semi-annual bond that has 12 coupon payments remaining, with the next coupon payment occurring 7 days from the settlement date. The bond's coupon rate is 4.3% and similar bonds are reported to have a yield of maturity of 8.2% There are 182 days between the bond's coupon payments.

a) What is the maximum price that you are willing to pay for the bond? $

b) If your assumptions are correct then what is the estimated quoted price (remember quotes are a percent of par value)? $

Reference no: EM131625343

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