A 6% German corporate bond is priced for settlement on 18 June 2019. The bond makes semiannual

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A 6% German corporate bond is priced for settlement on 18 June 2019. The bond makes semiannual coupon payments on 19 March and 19 September of each year and matures on 19 September 2030. The corporate bond uses the 30/360 day-count convention for accrued interest. Calculate the full price, the accrued interest, and the flat price per EUR100 of par value for three stated annual yields-to-maturity: 

(A) 5.80%, 

(B) 6.00%, and 

(C) 6.20%.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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