John will purchase a bond with a face value of $1,000.00. The quoted price is 90....

Transcribed Image Text:

John will purchase a bond with a face value of $1,000.00. The quoted price is 90. The coupon rate is 4% and 89 days have passed since the last coupon payment. How much should John be willing to pay for the bond? Hint: Assume 182 days between coupon payments (semi-annual coupon). Round your answer to the nearest two decimals. Do not type the $ symbol. John will purchase a bond with a face value of $1,000.00. The quoted price is 90. The coupon rate is 4% and 89 days have passed since the last coupon payment. How much should John be willing to pay for the bond? Hint: Assume 182 days between coupon payments (semi-annual coupon). Round your answer to the nearest two decimals. Do not type the $ symbol.

Answer rating: 100% (QA)

To calculate the price John should be willing to pay for the bond we need to consider the time remai... View the full answer