1) Determine the price in USD of a bond that was issued on April 1, 2020...

 

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1) Determine the price in USD of a bond that was issued on April 1, 2020 and is set to mature on April 1, 2035. This bond pays a coupon of 5% semi-annually. The face value is $5,000. The yield to maturity is currently 4.5% 2) If I want to buy the bond from question 1, on January 1, 2022, what would I pay (dirty price)? Note: this is a corporate bond which uses 30/360 basis (30 days per month and 360 days per year). The last coupon was paid on 10/1/2021 (90 days prior to my purchase date). 1) Determine the price in USD of a bond that was issued on April 1, 2020 and is set to mature on April 1, 2035. This bond pays a coupon of 5% semi-annually. The face value is $5,000. The yield to maturity is currently 4.5% 2) If I want to buy the bond from question 1, on January 1, 2022, what would I pay (dirty price)? Note: this is a corporate bond which uses 30/360 basis (30 days per month and 360 days per year). The last coupon was paid on 10/1/2021 (90 days prior to my purchase date).

Answer rating: 100% (QA)

A C E 1 1 Rate 225 Nper 30 4 PMT 125 FV 5000 6 7 Price 52... View the full answer