A 5-year Treasury bond with a coupon rate of 5% per year (semi-annual coupons) currently has a quoted price of $100 in the Wall Street Journal. Assuming the last coupon was 60 days ago and there are 364 days per year, what would you pay to buy this bond?

Answer rating: 100% (QA)

To calculate the fair price you should pay for this bond we need to consider two factors 1 Clean Pri... View the full answer