Question: Please answer a and b You are considering buying a semi-annual bond that has 24 coupon payments remaining, with the next coupon payment occurring 18

Please answer a and b Please answer a and b You are considering buying a semi-annual bond

You are considering buying a semi-annual bond that has 24 coupon payments remaining, with the next coupon payment occurring 18 days from the settlement date. The bond's coupon rate is 8.9% and similar bonds are reported to have a yield of maturity of 5.3% 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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