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A bond that has a face value of $4,000 and coupon rate of 4.20% payable semi- annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 4.95% compounded semi- annually. Round to the nearest cent 0.048 PMT = FV xb = 2,500.00 X = $60.00 2nd PN 2 Enter CNY 2 2nd Quit 13 N 5.3 IVY 2,500 +- FV 60 +/- PMT CPT PV PV = -2,432.018877... Therefore, the purchase price of the bond on the previous interest date Nas approximately $2,432.02. n = Number of days from previous interest date to purchase da Number of days from previous interest date to next interest January 1, 2015 to Febuary 10, 2015 January 1, 2015 to July 1, 2015 1 = Number of days from previous interest date to purchase da Number of days from previous interest date to next interest i January 1, 2015 to Febuary 10, 2015 January 1, 2015 to July 1, 2015 40 181 Purchase Price Purchase Date = Purchase Price Previous Interest Payment D 40 = 2,432.018877...(1 + 0.0265) 181 = 2,446.116897... = $2,446.12
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