Question: Please answer A and B. You are considering buying a semi-annual bond that has 18 coupon payments remaining, with the next coupon payment occurring 19
You are considering buying a semi-annual bond that has 18 coupon payments remaining, with the next coupon payment occurring 19 days from the settlement date. The bond's coupon rate is 9.6% and similar bonds are reported to have a yield of maturity of 3.9% There are 182 days between the bond's coupon payments. a) What is the maximum price that you are willing to pay for the bond? $ b) If your assumptions are correct then what is the estimated quoted price (remember quotes are a percent of par value)? $
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