Question: Please answer all blanks. Many experts struggle with these questions so please double check your work. I will not connect elsewhere. It is April 2,
It is April 2, 2018, and you are considering purchasing an investment-grade corporate bond that has a $1,000 face value and matures on June 4,2022 . The bond's stated coupon rate is 4.20 percent, and it pays on a semiannual basis (that is, on June 4 and December 4 ). The bond dealer's current ask yield to maturity is 3.80 percent. (Note: Between the last coupon date and today, there are 118 " 30/360 days. Between last coupon date and the next coupon date, there are 18030/360 days.) a. Calculate the total amount (involce price) you would have to pay for this bond if you purchased the issue to settle today. Do not round intermediate calculations. Round your answer to two decimal places. Enter your answer as a positive value. Express your answer as a percentage of the bond's par value. b. Separate this total invoice amount into (i) the bonds current "nat" (without accrued interest) price and (ii) the accrued interest. Do not round intermediate calculations. Round your answers to two decimal places. Express your answers as a percentage of the bond's par value. (a). (ii)
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