John will purchase a bond with a face value of $1,000.00. The quoted price is 90....
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John will purchase a bond with a face value of $1,000.00. The quoted price is 90. The coupon rate is 4% and 89 days have passed since the last coupon payment. How much should John be willing to pay for the bond? Hint: Assume 182 days between coupon payments (semi-annual coupon). Round your answer to the nearest two decimals. Do not type the $ symbol. John will purchase a bond with a face value of $1,000.00. The quoted price is 90. The coupon rate is 4% and 89 days have passed since the last coupon payment. How much should John be willing to pay for the bond? Hint: Assume 182 days between coupon payments (semi-annual coupon). Round your answer to the nearest two decimals. Do not type the $ symbol.
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To calculate the price John should be willing to pay for the bond we need to consider the time remai... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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