A Ford Motor Co. coupon bond has a coupon rate of 6.65%, and pays annual coupons. The

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A Ford Motor Co. coupon bond has a coupon rate of 6.65%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 32 years from tomorrow. The yield on the bond issue is 6%. At what price should this bond tradetoday, assuming a face value of $1,000?

My calculations have me with the answer $1,091.55

However, it says this is incorrect. I am assuming I am missing something or not understanding something in relations to the part of the word problem saying that the next coupon is due tomorrow?

Posted Date: May 18, 2024 09:16 PM

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A Ford Motor Co. coupon bond has a coupon rate of 6.65%, and pays annual coupons. The

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