Question: FULL SOLUTION TO QUESTION 1 AND 2 PLEASE! Question 1 A $15000 bond redeemable at par on February 24, 2016 is purchased on February 27,

FULL SOLUTION TO QUESTION 1 AND 2 PLEASE!

FULL SOLUTION TO QUESTION 1 AND 2 PLEASE! Question 1 A $15000

Question 1 A $15000 bond redeemable at par on February 24, 2016 is purchased on February 27, 2006. Interest is 9.5% payable semi-annually and the yield is 8.6% compounded semi-annually. (a) What is the cash price? (b) What is the accrued interest? (c) What is the quoted price? Question 2 Six $1000 bonds with 5.4% coupons payable annually are purchased six months after a coupon matures, to yield 2.7% compounded annually. The bonds mature 4 years after the most recent coupon payment. (a) What is the cash price? (b) What is the accrued interest? (c) What is the quoted price? Question 1 A $15000 bond redeemable at par on February 24, 2016 is purchased on February 27, 2006. Interest is 9.5% payable semi-annually and the yield is 8.6% compounded semi-annually. (a) What is the cash price? (b) What is the accrued interest? (c) What is the quoted price? Question 2 Six $1000 bonds with 5.4% coupons payable annually are purchased six months after a coupon matures, to yield 2.7% compounded annually. The bonds mature 4 years after the most recent coupon payment. (a) What is the cash price? (b) What is the accrued interest? (c) What is the quoted price

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