A bond maturing on Dec 31, 2026. is sold on May 1, 2021. Last coupon date was Dec 31, 2020. Next Coupon date is June 30, 2021. It pays 7% coupon (paid semi-annually). Par value is $1000. Yield is 5%. Bond follows actual/ actual convention. Calculate what is the flat price?

Answer rating: 100% (QA)

We can calculate the flat price of the bond using the following steps 1 Identify the components Face Value F 1000 Coupon Rate c 7 per year semiannual ... View the full answer