A bond with a face value of 100 pays an annual coupon of 12% and matures on Ad14 August 2007. It uses the actual/actual day count convention. For a settlement date of 23 December 2002 and an annual YTM of 9.75%, what is the full price? Assume an actual/actual day count.

Answer rating: 100% (QA)

To calculate the full price of the bond we can use the following formula Full price Present value of all future cash flows The future cash flows of th... View the full answer