An investor buys a 9% annual-pay bond maturing July 15, 2020 on September 6, 2013, (51 days after the coupon date using a 30/360 day-count convention). The bond's yield to maturity is 8%.

How much (as a percentage of par) will the investor actually pay for the bond?

Answer rating: 100% (QA)

To calculate the price of the bond we need to determine the present value of all future cash flows coupon payments and the principal payment discounte... View the full answer