Consider a fixed rate bond, with $\pounds 100$ face value, paying a coupon of $5\%$ on a semi$-$annual basis trading at a dirty price of $\pounds 105.$ Suppose that the bond is purchased between coupon periods where the number of days between the purchase date and the next coupon period is $100.$ Calculate the clean price of the bond assuming an ACT$/360$ day count convention.

Answer rating: 100% (QA)

Given Face value F 100 Coupon rate C 5 Semiannual coupon payment C F 2 250 Dirty price DP 105 Da... View the full answer